Deposit insurance Netherlands
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Netherlands is
covered up to EUR 100,000 100%
Deposit insurance and investor protection in the Netherlands
against the background of the history of such protection in
the European Union, EU-legislation and the recent changes in
the design of financial supervision in the Netherlands. It
discusses how countries have responded to the EU-directives
and to the changes in the financial environment. The main
findings of the paper are the following. The Netherlands was
among the first European countries to introduce deposit
insurance. Deposit insurance systems in the EU are
frequently funded ex post and offer lower coverage than
systems in most other regions of the world. The system in
the Netherlands shares these characteristics. Over time, all
countries have adapted their systems in the spirit of the
EU-directives on the matter, although it seems that some
countries still need to undertake changes to comply with
specific articles. During the 1990s, some convergence
towards best practices has taken place. EU-regulation has
obliged member countries to make their systems mandatory and
there is a tendency towards ex ante funding and risk-related
premiums. The the issues to be addressed by the Netherlands
are whether to combine deposit and investor protection
schemes, shift to ex ante funding partially or entirely and
impose risk-adjusted charges. A follow-up paper will examine
these issues further. |
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