THE HAGUE, 22/11/08 - Fortis Bank Nederland and ABN Amro are to be integrated. Former Finance Minister Gerrit Zalm will be CEO of the new banking combination.

Finance Minister Wouter Bos said Friday after the weekly cabinet meeting that the cabinet wants to set up "a single new, strong bank" that will remain in the hands of the government for a couple of years. The intention is that the concern should be privatised again in two or three years.

Zalm will head the banking combine. The supervisory board will be headed by former ING executive Hessel Lindenbergh. Both will be appointed from 1 January 2009. In the new combine, ABN Amro will be "the leading brand," Bos indicated.

Fortis' insurance activities will not be integrated in the group, but will be sold separately in the near term. The Fortis insurance arm includes brands such as De Amersfoortse, Europeesche and Falcon Life. Insurer Delta Lloyd has been named as a possible acquirer.

The unwinding of the two banks from their former parent concerns is expected to be completed in the course of next year. From then on, Bos says the new bank can be built up; it will not be re-privatised before 2011.

The Dutch state fully acquired the Dutch arm of Belgian-Dutch banking and insurance group Fortis, including ABN Amro, in October for 16.8 billion euros. The executives surrounding Zalm and the supervisors surrounding Lindenbergh will be appointed later.