Bank savings guarantee scheme under attack

The bigger Dutch banks are unhappy that they will have to pay savers who may have lost money because of the financial problems at DSB bank, the Telegraaf reports on Wednesday.

The bank guarantee scheme means private individuals and small firms are covered for up to €100,000 of savings if a bank under supervision of the Dutch central bank collapses. The other banks pick up the bill, depending on their share of the savings market. Rabobank, with 40% of the savings market, would be responsible for the biggest share.
DSB is currently under administration and the curators are looking into various options for its future, including a restart and bankruptcy.
But if it emerges that DSB’s collapse is due to management and regulator failure it would not be right to pass the cost on to the other banks, one insider told the paper.
The guarantee was increased to €100,000 by the finance ministry in the wake of the collapse of Iceland’s Landsbanki.

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