This enables the central bank Thursday in an analysis of its supervision of the financial sector.
DNB seeks financial institutions with gentle pressure to train the right direction, instead of fines or revocation permits. The authority of the regulator in the sector, however, for this often still inadequate, so many parties continue to resist long against the wishes and requirements of the DNB.
“We shoot still regulated deficit, ” said DNB director Jan Sijbrand the attempts to avoid formal action.
‘It is commonplace that companies continue to resist, the first letter to the last clue. We prefer to work with persuasion than by force and will therefore continue to develop our powers of persuasion. ”
Make
The limited authority, inter alia, a problem in improving the integrity of the financial sector. That’s according to DNB still a concern, because relatively many institutions still have a bad image of the integrity risks they run. And if the dangers have been identified, it is often asked what is being done to prevent them.
The regulator is hoping for support from a new law that forbids to set up structures only serve to disguise financial flows. ” Hopefully it works and the necessary big stick, ” said Sijbrand.
Panama Papers
Furthermore, DNB Thursday that showed the recent revelations following the Panama Papers that the integrity of the financial sector should be strengthened. The regulator keeps the news also “closely” monitored.
Thus, the central bank refers to various media messages that relied on leaked documents from the Panamanian consultancy Mossack Fonseca. It showed that banks and trust companies may have violated integrity rules.
The regulator has therefore asked a number of banks, insurers, pension funds and trust companies for their possible involvement in matters which were raised in the notice. The publications underline according to DNB again the importance of “systematic monitoring of integrity risks in financial institutions”.
moralist
“It is becoming increasingly clear that it is not just in matters of integrity to strictly literal to follow the law, but also to always ask the question whether a given transaction in society can be considered seemly. “
So trust companies and banks to determine whether they are not abused, for example, tax evasion , money laundering or fraud. DNB will thereby not act as “ultimate moral crusader ‘, but to appeal to the parties, especially every time their behavior.
But institutions should especially good look at themselves, said co-executive Frank Elderson.” The time may slightly because nowhere is that it is not over. ”
Earlier DNB expressed considerable criticism of the trust sector. Three of the five trust offices, exhibit DNB “serious shortcomings”, the other two “flaws”. Newspaper True reported last month that the central bank but difficult to get grip on the trust sector
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risks
DNB says last year to have the revelations of the Panama Papers, financial institutions accountable for their responsibilities in the area of integrity risks. The supervisor gives the majority of the institutions surveyed now sufficient for their analysis of integrity risks.
“That also means that still not all institutions are able their integrity risks in question or to have sufficient screen. ” DNB is considering taking action against poor scoring settings.
In addition, DNB started a follow-up study or institutions recognize the right risks and addressing the proper way.
Low interest rates
in addition, the central bank Thursday pointing again to the dangers of low interest rates for the financial sector. Low interest rates have “profound” impact on the business models of banks and insurance companies.
“As the banks for the low long term interest rates will be an important oppressive factor in net interest income, the main source of income for banks “DNB.
banks may react by reducing their financing, but DNB thinks it is still unlikely that banks will rely for example, negative interest rates for savings.
Pension funds
pension funds are affected by low interest rates. When interest rates are low, to keep pensions more cash in hand to meet their current and future obligations.
DNB believes that the low interest rates, the need to adapt pension systems are getting larger become. The need to change the pension system is therefore only grown according to DNB
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