Peer Review of the Netherlands
The main purpose of this peer review is to examine the macroprudential policy framework and tools, and crisis management and bank resolution. Both topics were included in the key recommendations of the IMF’s assessment of the Netherlands under the Financial Sector Assessment Program (FSAP) in 2010, and are topical for the broader FSB membership. The peer review focuses on the steps taken to date by the Dutch authorities to implement reforms in these areas. It concludes that the authorities have made good progress in addressing the FSAP recommendations; even though work is ongoing, much has been accomplished and the Netherlands remains at the forefront of international reforms in both areas. Going forward, the peer review notes that the authorities need to clarify further the role of the inter-agency Financial Stability Committee (FSC) within the macroprudential framework. The ongoing effort to analyse and address housing market vulnerabilities will be an instructive test of the FSC’s effectiveness and level of ambition. The authorities also need to close remaining gaps in the legal framework for resolution and to realign the institutional framework to ensure resolution is feasible and credible. An important driver of developments in both of these areas has been, and will continue to be, European Union (EU) initiatives.