You don’t have to worry. While the global credit crisis goes from bad to worse, your savings in the Netherlands are being safeguarded by Dutch central bank president Nout Wellink.
Dutch banks will not collapse under weight of the global credit crisis, not even Fortis, the most beleaguered financial services group on the Amsterdan stock exchange, Wellink told a tv news programme last night.
This is because the supervision of Dutch banks is very strict. Which begs the question how come Fortis was allowed to get itself in such a mess in the first place? Overstretched by its takeover of part of ABN Amro as well as being knocked sideways by the subprime mortgage debacle, Fortis is certainly wobbling.
And one has to ask the question what were central banks (including the Dutch) doing when commercial banks were placing the complicated investment products at the root of the crisis off their balance sheets? Surely that was a time to act.
Nevertheless, it is true Dutch banks are more cautious than their US counterparts in risk taking and that they are given less free reign than in America.
So, are your savings safe with Wellink? On the current information available, probably yes. But who knows what Wellink and the banks are keeping confidential. Maybe you should get your biscuit tin ready just in case.
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