Cabinet Wants Stricter Requirements for System Banks
THE HAGUE, 27/08/13 - The government wants the major Dutch banks to hold bigger buffers than specified internationally, under the scenario for the banking sector laid out by the cabinet Friday.
It has provisionally been specified in international treaties that the ‘leverage ratio’ must be at least 3 percent by 2018. The cabinet is however aiming for a minimum of 4 percent for the Dutch system banks. In its banking scenario, the cabinet indicates that bonuses for bankers will be restricted via a new act to a maximum of 20 percent of their annual salary. This target was already specified in the coalition accord. The cabinet considers it a good idea to introduce standard products in the financial sector. In this way, it should become easier for clients to compare products of different providers, and the lack of equality of information between client and bank should become smaller. The cabinet hopes that the sector itself will take steps in this area and will investigate how criteria for standard products can be established. Additionally, the government considers that there must be more competition in the banking sector. This applies particularly to the mortgage market, which is almost entirely in the hands of the three biggest banks. The Consumer & Market Authority supervisory body will publish the results of a study of competition on the mortgage market later this year. |