ARTICLE
16 September 2011

Proposals For Ex Ante Financing Of The Deposit Guarantee System

DB
De Brauw Blackstone Westbroek N.V.

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De Brauw Blackstone Westbroek is a leading international law firm, trusted by clients for over 150 years due to its deep engagement with their businesses and a clear understanding of their ambitions. While rooted in Dutch society, the firm offers global coverage through its network of top-tier law firms, ensuring seamless, tailored legal solutions. De Brauw’s independence enables it to choose the best partners while remaining a trusted, strategic advisor to clients worldwide.

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The government has recently proposed changing how the Deposit Guarantee System ("DGS") in the Netherlands is financed.
Netherlands Finance and Banking

DeBrauw Netherlands Update - September 2011

The government has recently proposed changing how the Deposit Guarantee System ("DGS") in the Netherlands is financed. Under the proposed system, banks would contribute to the DGS each quarter in advance. The contributions would be added to the deposit guarantee fund from which compensation claims can be paid. If there is insufficient money in the fund, the shortfall will be shared between banks. Banks will no longer be able to take part in the system for free - even a bankrupt bank will have contributed to the system. By having a risk-differentiated contribution, banks bearing the least risk will pay the lowest premiums. In addition, the costs will be spread out over time so that banks will no longer be faced with one high charge.

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