Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment
IMF Staff Country Reports, April 8, 2024
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- Canonical URL
- Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment
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Bibliographic details
- Published: April 8, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400271809.002
Context and macrofinancial backdrop
- The Financial Sector Assessment Program took place against slowing economic growth amid tighter financial conditions, elevated housing prices, large and interconnected nonbanks with major pension reforms underway, and increased securities market trading after Brexit.
- The Netherlands faces climate challenges related to sea level rise and more frequent extreme rainfall, and the need to bring down nitrogen depositions, which currently exceed critical values and threaten biodiversity loss.
Systemic risk analysis: scope and focus
- Focused on housing, non-banks, and climate.
- Assessed adverse macrofinancial scenarios and climate physical risk scenarios (including a wide range of flood events).
Key findings
- Financial institutions are broadly resilient to the adverse macrofinancial scenarios considered in this assessment.
- Risks for corporates and some households remain elevated.
- The climate physical risk analysis suggests that banks and insurers are largely resilient to a wide range of flood events.
Policy recommendations and operational priorities
- Ensure operational readiness for resolution.
- Develop and regularly test a national financial crisis management plan.
Keywords and subject emphases (as stated)
- Climate change, Environment, Expenditure, Financial institutions, Financial sector policy and analysis, Financial sector stability, Insurance companies, International organization, Monetary policy, Pension spending.
- Keywords include: bank solvency stress test, Climate change, climate risk oversight, coverage ratio, Financial sector stability, Global, Insurance companies, mortgage interest deductibility, Pension spending, risk analysis.
Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment, April 8, 2024.
Content in this bundle
- 1nldea2024003