Dutch bank DSB placed under administration

12th October 2009, Comments 0 comments

Dutch central bank to supervise DBS, rules Amsterdam court.

Amsterdam – Dutch bank DSB was placed under administration at the behest of the Dutch central bank (DNB) on Monday following reports it is on the verge of bankruptcy, the Amsterdam district court said.

"The court has awarded an application by the DNB for emergency regulations to be instituted at DSB," said a court statement.

An independent administrator will be appointed.

For its part, the central bank said it had sought the measure due to a "large outflow of liquidity that has brought the survival of DSB under threat in the short term."

"This also placed DSB's solvency under great pressure," it said in a statement.

DSB has been hit by a crisis of confidence following claims its salesmen were selling customers mortgages they could not afford and unnecessary insurance policies.

Pieter Lakeman, chairman of an organisation representing around 1,100 DSB customers in dire financial straits due to loans and mortgages issued by the bank, called on DSB’s customers to bring down the bank by withdrawing their savings en masse.

Since then, thousands of people have taken their money out of the bank.

Holders of savings accounts at Dutch banks are guaranteed for up to EUR 100,000 per person if a bank collapses.

According to the Financieele Dagblad, DSB founder Dirk Scheringa has been trying to sell the bank for EUR 250 million without much success.

DSB, which recorded a profit of EUR 45.4 million in 2008, says on its website that it owned 17 percent of the market share of consumer credit in the Netherlands.

AFP / Expatica

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