Kingdom of the Netherlands: Netherlands: 2009 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Kingdom of the Netherlands: Netherlands

IMF Staff Country Reports, February 4, 2010

Source details

Canonical URL: Kingdom of the Netherlands: Netherlands: 2009 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Kingdom of the Netherlands: Netherlands

The staff report describes economic developments and policies for the Netherlands’ 2009 Article IV Consultation.
State interventions in the financial sector have been “broadly appropriate and consistent with a sound fix-it-and-exit approach.”
Measures taken included capital injections, nationalization, and government guarantees.
Systemic risks have been addressed effectively and “risk-weighted capital ratios are above required minima.”
However, building up equity to levels deemed more adequate in regulatory reform proposals and achieving brisker lending to support the economic recovery may require banks to tap “considerable extra capital.”

Interventions implemented:
- Capital injections
- Nationalization
- Government guarantees
Outcomes and remaining challenges:
- Systemic risks addressed effectively.
- Risk-weighted capital ratios are above required minima.
- Additional equity likely needed to meet proposed regulatory reform levels.
- Brisker lending to support recovery may necessitate significant extra capital from banks.

Focus areas noted in the publication metadata:
- Banking, Economic sectors, Expenditure, Financial sector, Fiscal policy, Fiscal stance, Fiscal sustainability, Labor
Keywords included in the source: Aegon, capital injection, CR, Financial sector, Fiscal stance, Fiscal sustainability, Global, harmonized inflation, IMF's view, ISCR, Netherlands, old-age-care reform, projection, staff appraisal