Finance minister to set up inquiry into SNS Reaal collapse

Finance minister Jeroen Dijsselbloem is setting up an independent inquiry into the downfall of financial services group SNS Reaal, nationalised at the beginning of last month.

The group got into financial trouble because of heavy losses at its property division Property Finance and there are a number of outstanding questions, broadcaster Nos said.

In particular, it is not clear why in 2006 the central bank agreed with SNS taking over the property financing company, which used to be part of the Bouwfonds development group.

The inquiry will look into events during the 2006-to-2013 period and will evaluate the role of the central bank and finance ministry, Dijsselbloem said.

The report is due to be published this autumn. The project will be led by Rein Jan Hoekstra, a CDA stalwart and member of the Council of State, and corporate governance expert and economist Jean Frijns.