fout! onbekende naam voor documenteigenschap. “ be prepared to be flexible ” opening speech nicole stolk at the seminar ‘ design and practice of bank resolution ’ dutch - belgium imf constituency amsterdam, 11 october 2019 on 11 october 2019 the dutch - belgium imf constituency held a seminar ‘ design and practice of bank resolution ’ in amsterdam. dnb ’ s resolution director nicole stolk opened the seminar with a speech in which she summarized the dutch experience with bank resolution within the european context. she concluded by pointing out the two challenges for resolution in the near future : engaging with the banks and close cooperation between all parties involved. fout! onbekende naam voor documenteigenschap. good morning and welcome to amsterdam. we are here today in the presidents ’ room. if you look over to the far wall you can see that all the former presidents of de nederlandsche bank are watching us. at the top left is our very first president, paul iwan hogguer. in 1814 he was appointed by king willem the first of the netherlands to oversee the creation of dnb. he was also mayor of amsterdam at the same time! as the son of a swiss banker and a prussian mother, and with a brother who served as a diplomat at the portuguese and the russian courts, he would have appreciated such esteemed international company. as i am sure you do. one of the main goals of this seminar is to meet each other and to share our experiences. it ’ s good to see such a diverse range of nationalities. most of you are from countries of the dutch - belgium imf constituency. but we also have with us representatives from other jurisdictions, such as indonesia, egypt and albania. there is also diversity in how you approach resolution. the different resolution regimes may of course reflect specific aspects of a jurisdiction, such as the structure of its banking sector. but each country ’ s approach is also shaped by its history in dealing with a banking crisis. some jurisdictions are already at an advanced stage in developing a designated resolution function. others are just getting started. some, like the ukraine, have already dealt with resolution cases in the past, while others may have little hands on experience. this seminar is aimed at high - level management, to discuss the more strategic issues. the focus is on how resolution regimes are set up, as well as the guiding principles for resolution. the banking industry operates increasingly on a cross -

border basis. this means effective cooperation between regulators is vital. meetings like this give us the opportunity to understand each other ’ s approaches better. so we can become better aligned at a time when the industry is not in crisis. today we can compare the lessons learned, and listen critically and constructively to one another. and – i hope – return home with fresh ideas and new contacts. now i will discuss our experience with resolution here in the netherlands. although we did not experience a real case since the establishment of the resolution regime, we have quite a lot experience in the set - up and design of a resolution function. i will describe our experiences so far from three different angles : - our history - the european context - and the challenges we face. the historical angle first, the historical angle. i already indicated that we – fortunately – have had no experience with crisis cases since we established the resolution function in 2015. this of course does not mean the dutch banking sector is a calm landscape, as we witnessed with the full blown financial crisis of 2008 to 2010. during this crisis, the netherlands had its fair share of crisis management experiences. and that was actually very much in the hands of mr. nout wellink, depicted on the lower right hand side of the gallery. in that period, we had two bank failures, but the crisis also affected more systemically important banks and there was no resolution framework in place. the dutch government had to support banks with taxpayers ’ money. this resulted in a difficult balancing act : maintaining public confidence while retaining critical bank functions. since then, our guiding principle has been that taxpayers ’ money must never again be used to save failing banks. losses incurred by banks must first and foremost be borne by the banks ’ shareholders and creditors. this principle was actually partially applied to the public takeover of sns reaal in 2013, when the minister did write down on equity and subordinated debt. the netherlands was, and still is, a very keen supporter of this “ paradigm shift ”, which has also paved the way for the establishment of the current european resolution regime. although we have had no concrete cases of failure in the netherlands since, lessons learnt elsewhere can help us improve our approach to resolution. later during this seminar, we will analyse the few resolution cases in the eu, so we can see how the european resolution regime has been applied in practice. ms. rozhkova from ukraine will also share the implications of the resolution of a major ukrainian bank. some