Central bank works on ‘stress test’

The Dutch central bank is to spend the next few weeks assessing the likely future capital needs of Dutch banks on the basis of stress tests, the Financieele Dagblad reports on Friday.

Finance minister Wouter Bos told MPs on Thursday the list should be completed by the end of August.
A spokesman for the bank told the paper not all 75 banks under its supervision would be covered. Instead, only ‘relevant’ banks would be tested.
Since the start of the crisis, the government has put €44bn into shoring up banks and financial services groups or taking them over, the paper says.
ABN Amro
Last week, Bos told MPs he had given the green light to a further €2.5bn in support for ABN Amro, some of which is for a portfolio of Dutch mortgages.
But MPs yesterday refused to give the minister the go ahead to make other loans without the express permission of parliament.
If necessary, MPs said they would return from the summer recess to vote.
ABN Amro will need a second capital injection due to the forced sale of the Hollandse Bank Unie, which has been ordered by Brussels. Extra cash will then be needed to prop up ABN Amro’s reserves.
The sale was ordered in 2007 and despite the economic downturn, competition commissioner Neelie Kroes has refused to reverse her decision, much to MPs’ anger, newspaper Trouw reports.

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