DNB tells banks to test ‘extreme but plausible’ political scenarios
Geopolitical risks become focal point of Dutch supervision strategy
The Netherlands Bank (DNB) wants the country’s lenders to better understand how materialising geopolitical risks could impact financial stability.
In its 2025–28 supervision strategy, announced today (November 11), it calls on banks to integrate geopolitics into their risk management scenarios and stress tests.
“Such stress tests should be based on extreme but plausible scenarios, such as a further escalation of tensions between China and Taiwan,” the central bank says.
The DNB says this should
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