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Netherlands nationalizes SNS Reaal

The Netherlands Ministry of Finance in close consultation with De Nederlandsche Bank (DNB) has nationalized banking and insurance firm SNS Reaal, after an unsuccessful bid to revitalize the bank due to capital deficiency.

Commenting on the process, finance minister Jeroen Dijsselbloem said SNS Reaal’s nationalization will safeguard financial stability and prevent serious damage to the economy.

Huge withdrawals of deposit in the recent past has pushed the lender on the threshold of bankruptcy and put the financial system in severe and immediate danger, the minister commented.

Assuring the depositors and bank customers, the minister said that saving deposits of clients and 1,6 million saving accounts and million checking accounts were secure and the service provision of SNS REAAL has been safeguarded.

The government has decided to infuse €3.7bn ($5.02bn) in the bank and will offer an additional €6.1bn in loans and guarantees, Finance Minister Jeroen Dijsselbloem said addressing a news conference.

SNS Reaal executive board members as well as CEO Messrs Latenstein, CFRO Ference Lamp, and chairman of the supervisory board, Rob Zwartendijk have stepped down from their posts.