Dutch central bank's presidency to be limited
The president of the Dutch Bank DNB, the central bank of the Netherlands, may from now on serve no more than two seven-year terms. Finance minister Jan Kees de Jager made this known in a letter to the Dutch parliament on Monday. This suggests that the second term of the current DNB president, Nout Wellink, will end next year, since Mr De Jager’s announcement makes an extension highly unlikely.
Mr De Jager’s measure comes in response to a report by the DNB, in which it was asked to explain how a change of internal banking culture could be achieved, one that would enable more decisive action to be taken. Mr De Jager had given Mr Wellink one month to come up with a packet of measures following harsh criticism of both the DNB, and its president, for their actions during the failure of the DSB Bank in 2009.
According to Mr De Jager, the DNB’s supervision must be “more penetrating, more critical and above all more tenacious”. DNB announced in the plan that the functioning of top management - including the boards of directors - would be studied more critically, and also by outside experts. In addition the recruitment, selection and training of bank employees would be adjusted and more attention given to timely intervention in financial institutions.
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