IMF Staff Country Reports

This paper presents a technical note on banking supervision in The Netherlands. Supervision of less significant institutions is effective in the Netherlands. The Financial Sector Assessment Program encourages De Nederlandsche Bank (DNB) to maintain its proactive and creative approach, and proposes some extensions to solidify this practice. DNB and the Autoriteit Financiële Markten should also continue the rigorous practice in IO Mortgage supervision, while further emphasizing the quality of inputs for risk managements of banks, in particular, updated clients’ disposable incomes and collaterals’ values, and motivating banks to improve risk controls and the data aggregation process. Going forward, supervision must reflect a changing market landscape and rapid deployment of new technologies.