The Netherlands Bank (DNB)
UK and Dutch central banks set out capital plans
The Bank of England finalises plans to implement CRD IV after public consultation; Netherlands Bank looks to impose additional capital buffer on four systemic banks
DNB's Knot says EMU countries must stick to macroeconomic rules
Blame for the euro crisis should be shared between surplus and deficit countries, says Dutch central bank chief, who urges a strict adherence to rules governing monetary union
Interest swaps with longer maturities more sensitive to macroeconomic news, DNB paper suggests
The impact in Sweden of macroeconomic news on the sensitivity of interest rate swaps was reduced at the effective zero lower bound at short maturities but not at longer maturities, according to paper
Knot backs advanced economies to buck secular stagnation
Netherlands Bank president Klaas Knot says a period of technological change will stop advanced economies from sliding into a new era defined by lower growth rates
New collateral framework will have a ‘limited’ impact on banks, says DNB
Dutch central bank imposes tougher collateral requirements on the banks that use its services; more stringent than the wider Eurosystem, which has made a number of accommodations in recent years
Dutch paper finds Germans ‘substantially more cash oriented’ than other nationalities
Researchers consider why cash is still ‘heavily used’ for low-value payments in Europe; attributes German consumers' continued use of cash to ‘precautionary’ reasons
Dutch paper finds that bonuses are main cause of distrust in banks
Researchers at Dutch central bank find that banker bonuses have a greater impact on public trust than government intervention, stock prices and media reports
Knot backs simple regulatory rules
Dutch central bank president says regulatory simplicity would make it easier for supervisors to detect risks and central banks to ‘promote’ financial stability
Fed retains credibility following forward guidance, says Dutch paper
Dutch researcher says the Federal Reserve’s forward guidance resulted in a ‘significant reduction’ in Treasury yields as a whole, but did not change the relationship between real and nominal yields
Netherlands Bank says macro-prudential tools have ‘added value’ in currency union
Dutch central bank points to national and regional benefits of macro-prudential policy; says the ECB’s ability to intervene in an individual country’s policy will help counter the ‘inaction bias’ of policy-makers
Trust in financial sector shapes long-term consumption patterns
General economic indicators, ‘animal spirits', and trust all explain ‘consumer sentiment crisis' stoked by the Great Recession, according to DNB working paper
Netherlands Bank says ECB’s asset quality review necessary to restore market confidence
Dutch central bank says lack of market confidence is making it difficult for European banks to build stronger balance sheets, and that the ECB’s asset quality review will help address this
Canadian bonds more normal than US and UK equivalents at ZLB
Canadian sovereign debt yields are more responsive to shocks than UK and US equivalents at zero lower bound; differences diminish at shorter maturities
Canadian yields shown to be less sensitive to data shocks than US or UK
Working paper from the Dutch central bank shows that at the zero lower bound, Canadian government bond yields are less sensitive to surprising domestic data than US or UK equivalents
Central banks struggle to publicise new banknotes
Netherlands Bank finds that two-thirds of the Dutch population do not check the authenticity of their banknotes, which adds to the difficulty of communicating changes in their security features
Dutch executive director warns banks against ‘charm offensive’
Jan Sijbrand says banks will only win back public trust by making more ‘prudent’ decision-making, and explains how the central bank has bolstered its corporate governance
FOMC policy rate guidance pushes up US equity prices
Netherlands Bank research paper finds policy rate guidance also leads to significant reduction in implied volatility for US government bonds
Customers of failing banks less likely to trust other people
DNB working paper says mistrust prompted by experience of crisis increases likelihood of bank runs and undermines long-term growth
Dutch study uses neuroscience to dissect consumers’ payment choices
The Netherlands Bank uses an MRI scanner to examine what is going on in consumers’ minds as they choose whether to pay by cash or card
Dutch paper quantifies impact of FOMC guidance on market rates
Working paper says Fed forward guidance lowered market interest rates up to seven years ahead; flattened yield curves in markets for US Treasuries and eurodollar futures
Euro area bank lending restricted by sovereign debt exposure, say DNB researchers
There is a direct link between deteriorating creditworthiness of foreign sovereign debt and lending by banks holding such debt, according to a working paper from the Dutch central bank
ECB’s LTROs had ‘favourable effect’ on sovereign yields
Dutch working paper evaluates the impact of the ECB’s unconventional monetary policy; says LTRO had beneficial short-term effect on government borrowing in most distressed eurozone countries
DNB working paper puts forward Eurobonds solution
Proposal would see Eurobonds distributed by an ‘independent budgetary authority' and would be made available depending on a member state's fiscal responsibility as per the Maastricht Treaty
The Dutch are ‘poorly informed’ about country’s debt
Central bank survey finds that the Netherlands’ population underestimates the size of the country’s public debt, and wrongly attributes its creation to support for banks and other European governments