Collapse of Dutch bank blamed on Central Bank

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The Dutch Central Bank DNB should never have allowed the one-man financial enterprise DSB to go into banking, a critical review found on Tuesday.

Presenting his report, committee chairman Professor Michiel Scheltema accused the Central Bank of taking unacceptable risks by licensing DSB. The small bank collapsed in 2009 when clients withdrew their savings following a call by a consumer rights activist on national TV.

DSB clients who had taken out mortgages discovered they had committed themselves to payments which far exceeded their means.

Caretaker Finance Minister Jan Kees de Jager, who was officially presented with the report on Tuesday, told reporters that his confidence in the Netherlands' Central Bank remained unshaken after the Scheltema review.

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