Dutch banks improve credit risk position

Dutch banks are running little risk with the loans currently on their books, the European Banking Authority said on Tuesday.

ING, Rabobank, ABN Amro and SNS Reaal have a modest amount in outstanding bad mortgage loans and very few outstanding loans in countries with a weak economy, website nu.nl quotes the EBA as saying.

The EBA demands a capital ratio of 9%. ING has a ratio of 11.8% and Raboban 12.9% while nationalised banks ABN Amro (13.3%) and SNS Reaal (12.2%) also make the grade.

The average credit ratio of the 64 banks in the eurozone is 11.7%.

The EBA report comes ahead of a stress test scheduled for 2014, ahead of the European Central Bank taking over supervision of the banking sector.

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