In Holland subjected nationalize one of the largest banks in the country

which is required by the national system of mutual insurance of retail deposits in the local banking sector


The Dutch government has implemented the nationalization of the fourth-largest banking institutions in the country SNS Reaal. The purpose of this was to prevent its uncontrolled bankruptcy, according to the Associated Press.



Finance Minister Deysselblum Jeroen, who recently became the new head of the Euro Group, announced that the salvation of SNS Reaal will cost local taxpayers about 3.7 billion euros. But in that case, if the state has refused to intervene in the affairs of the bank, it would wait for "the inevitable bankruptcy", which could have devastating consequences for the public finances.

SNS Reaal bank is systemically important financial institutions in the Netherlands. It accounts crouches around 10% of total deposits in the local banking sector. Rating of bank deposits in this bank was previously high. The bank was in such a state because of massive losses associated with assets in real estate, who included the assets in a crisis in Spain.

Y.Deysselblum said that the depositors of the bank will not be affected, but the shareholders will lose investment, however, as some of the number of creditors. The head of the Dutch Ministry of Finance acknowledged that the nationalization of the bank is a retrograde step in restoring stability and health of the Dutch financial sector. Y.Deysselblum assured that the authorities are going in the future to avoid such public interventions with taxpayers' money.

The rest of the largest banking institutions Holland, which include ING Group, Rabobank, ABN Amro and will have to jointly allocate about one billion euros to support the bank SNS, which is required by the national system of mutual insurance of retail deposits in the local banking sector.