Financial sector angry at extra central bank regulatory costs
Monday 12 November 2012
Insurance companies and banks are embroiled in a conflict with the Dutch central bank about increases in the cost of regulatory supervision, the Financieele Dagblad reports on Monday, quoting market sources.
The central bank is planning to increase the cost of regulation in line with an expansion of its supervisory role and banks, insurance companies and pension funds will pick up the bulk of the rise.
The paper says critics are reluctant to express their discontent too loudly because of fears that they will be targeted for extra attention.
‘All the [financial service] sectors are feeling the crisis,’ said Theo Hoppenbrouwers, an advisor to the health insurance sector body ZN. ‘The central bank is increasing the cost of regulation by double figures without making clear what is improving.’
The central bank is putting up the cost of carrying out its regulatory role by 13% to €149m next year. The financial services watchdog AFM costs a further €80m. At the same time, the state contribution of €38m is being reduced and will go altogether in 2015.
The central bank says it needs the extra income to pay for increased supervision in the wake of the financial crisis and is expanding its regulatory staff by 54 jobs.
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