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© 2011 International Monetary Fund

July 2011

IMF Country Report No. 11/206

Kingdom of the Netherlands-Netherlands: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Observance on Basel Core Principles for Effective Banking Supervision (BCP)

This Detailed Assessment of Observance on Basel Core Principles for Effective Banking Supervision (BCP) on The Kingdom of the Netherlands-Netherlands was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 22, 2011. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Kingdom of the Netherlands-Netherlands or the Executive Board of the IMF.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

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Front Matter Page

Financial Sector Assessment Program Update

Kingdom of The Netherlands-Netherlands

basel core principles for effective banking supervision (bcp)

Detailed Assessment of Observance

June 2011

International Monetary Fund

Monetary and Capital Markets Department

Contents

• Glossary

• I. Summary, Key Findings, and Recommendations

• II. introduction

• III. Information and Methodology Used for Assessment

  • A. Institutional and Macro-Economic Setting and Market Structure–Overview

• IV. Preconditions for Effective Banking Supervision

  • A. Sound and Sustainable Macroeconomic Policies

  • B. A Well Developed Public Infrastructure

  • C. Payment and Settlement Systems

• V. Legal Framework

  • A. The structure of the Act on Financial Supervision and Secondary Legislation

• VI. Supervisory Approach (Financial Institutions Risk Analysis Method)

• VII. Main Findings

  • A. Objectives, Independence, Powers, Transparency and Cooperation (CP1)

  • B. Licensing and Structure (CPs 2–5)

  • C. Prudential Regulation and Requirements (CPs 6–18)

  • D. Methods of Ongoing Banking Supervision (CPs 19–21)

  • E. Accounting and Disclosure (CP 22)

  • F. Corrective and Remedial Powers of Supervisors (CP 23)

  • G. Consolidated and Cross-Border Banking Supervision (CPs 24–25)

  • H. Recommended Action Plan and Authorities’ Response

• Tables

• 1. The Netherlands: Summary Compliance with the Basel Core Principles–Detailed Assessments

• 2. Detailed Assessment of Compliance with the Basel Core Principles

• 3. The Netherlands: Summary Table of Basel Core Principles Compliance

• 4. The Netherlands: Recommended Action Plan to Improve Compliance with the Basel Core Principles

• Appendix

• I. Ladder of Intervention

Glossary