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Dutch state to keep nationalized Dutch banks SNS and ABN AMRO separate

The Netherlands Authority for Consumers and Markets (ACM) has approved the measures that are to ensure that SNS Reaal, ABN AMRO and ASR, which have all been nationalized, continue to remain independent companies, each with their own boards and responsibilities.  These measures come from the Dutch Ministry of Finance, and are designed to prevent anticompetitive risks such as collusive practices. For example, board members will not be allowed to hold multiple positions, and information is to be completely separated.

Since the nationalization of Dutch banking and insurance firm SNS-Reaal in February, the Dutch state has become the owner of it. The Dutch state already owned Dutch bank ABN AMRO and insurance provider ASR. This situation carries anticompetitive risks because all of these firms are under ‘the same ownership.’

The measures in question ensure that these financial institutions are able to operate as independent firms, and that enough competition will remain between banks and insurers. An auditor will be appointed, who will be monitoring compliance with these arrangements. The Dutch Ministry of Finance has implemented these measures into the organizational structure of NLFI, which is the foundation that owns the two banks and insurers on behalf of the Ministry.