The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Bankruptcies: Dutch bank failure might benefit Rabo

DSB reawakens depositors to bank risk; Rabo sees less competition from state-supported rivals

  President of the Dutch Central Bank Nout Wellink

President of the Dutch Central Bank Nout Wellink attends a news conference about the troubled DSB Bank in Amsterdam 

The bankruptcy of Dutch mortgage lender DSB Bank in October offers a chilling reminder of bank risk to increasingly complacent investors, creditors and depositors. In November, it confirmed that depositors’ money remained frozen and no advances would be provided in anticipation of payouts under the country’s deposit insurance scheme. Other Dutch banks must pay for this and might now regret not finding ways of pressuring the bank to change its ways. Even Rabobank, the only large Benelux bank to come through the credit crisis without taking state capital and the only Dutch bank to continue issuing debt without a state guarantee, cannot escape this one unscathed.

As the largest bank in the Netherlands, with a 25% market share of retail deposits, Rabobank will pay a proportionately high share of DSB’s eventual losses after asset sales. In the worst case, if DSB’s losses came in at €1 billion, Rabobank would face an €250 million hit.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree