De Nederlandsche Bank

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Coordinates: 52°21′31.40″N4°54′0.0″E / 52.3587222°N 4.900000°E / 52.3587222; 4.900000

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De Nederlandsche Bank
De Nederlandsche Bank logo.svg
Headquarters Amsterdam
Established25 March 1814;204 years ago (1814-03-25)
President Klaas Knot
Central bank ofThe Netherlands
Currency euro
Succeeded by European Central Bank (1999)1
Website www.dnb.nl
1 De Nederlandsche Bank still exists but many functions have been taken over by the ECB.
Headquarters in Amsterdam NederlandscheBank.jpg
Headquarters in Amsterdam

De Nederlandsche Bank (DNB) is the central bank of the Netherlands. It is part of the European System of Central Banks (ESCB). De Nederlandsche Bank is a public limited company (Dutch: naamloze vennootschap) whose every day policy is overseen by the Governing Board. Being an NV, DNB has a Supervisory Board (Dutch: Raad van Commissarissen). In addition, there is an advisory body called the Bank Council (Dutch: Bankraad). As a public entity the DNB has a function as both part of the European System of Central Banks (ESCB) and an independent public body (Dutch: zelfstandig bestuursorgaan).

Central bank public institution that manages a states currency, money supply, and interest rates

A central bank, reserve bank, or monetary authority is the institution that manages the currency, money supply, and interest rates of a state or formal monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency, which serves as the state's legal tender. A central bank also acts as a lender of last resort to the banking sector during times of financial crisis. Most central banks also have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.

Netherlands Constituent country of the Kingdom of the Netherlands in Europe

The Netherlands is a country located mainly in Northwestern Europe. The European portion of the Netherlands consists of twelve separate provinces that border Germany to the east, Belgium to the south, and the North Sea to the northwest, with maritime borders in the North Sea with Belgium, Germany and the United Kingdom. Together with three island territories in the Caribbean Sea—Bonaire, Sint Eustatius and Saba— it forms a constituent country of the Kingdom of the Netherlands. The official language is Dutch, but a secondary official language in the province of Friesland is West Frisian.

European System of Central Banks

The European System of Central Banks (ESCB) consists of the European Central Bank (ECB) and the national central banks (NCBs) of all 28 member states of the European Union (EU).

As a part of the ESCB, DNB is co-responsible for the determination and implementation of the monetary policy for the Euro area, besides being a link in the international payment system. As an independent public body, DNB exercises prudential supervision of financial institutions. [1]

An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between nation states. It should provide means of payment acceptable to buyers and sellers of different nationalities, including deferred payment. To operate successfully, it needs to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade, and to provide means by which global imbalances can be corrected. The system can grow organically as the collective result of numerous individual agreements between international economic factors spread over several decades. Alternatively, it can arise from a single architectural vision, as happened at Bretton Woods in 1944.

History

On 2 May 1998, the European heads of state or government decided that the Economic and Monetary Union (EMU) would begin on 1 January 1999 with eleven Member States of the European Union (EU), the Netherlands included. As from 1 June 1998, the Dutch central bank, De Nederlandsche Bank N.V., forms part of the European System of Central Banks (ESCB). On the same day, the new Bank Act (of 1998) came into force. Nearly 185 years into its existence, the Nederlandsche Bank has entered a new phase.

Tasks of De Nederlandsche Bank

Under the 1998 Bank Act – replacing that of 1948 – the Bank has the following tasks:

The first two tasks – also known as the ESCB tasks – ensue entirely from the Maastricht Treaty. Decisions in these areas are taken at the European level by the ECB Governing Council, on which the President of the Nederlandsche Bank has a seat. Promoting the smooth operation of payment systems has both a European and a national dimension. The statistical task is also partly ESCB-related and partly a national concern. The DNB is responsible for international macro-economic statistical analysis for countries outside the EU. [2] These two tasks will not be transferred to ESCB level at the start of EMU. Here the Nederlandsche Bank remains fully in control. However, in a Europe where economies are becoming increasingly interlocked, many banking supervisory rules are drawn up at the international level. DNB serves as the banker's bank to general Dutch banks.

One of the government appointed members of the Social-Economic Council is always a representative of DNB.

List of Presidents of De Nederlandsche Bank

President of De
Nederlandsche Bank
Term of officePrevious Experience(s)Party
Marius Wilhelm Holtrop (1967).jpg Dr.
Marius Holtrop
(1902–1988)
1 May 1946 –
1 May 1967
(21 years, 0 days)
Independent
Jelle Zijlstra 1980 (1).jpg Dr.
Jelle Zijlstra
(1918–2001)
1 May 1967 –
1 January 1982
(14 years, 245 days)
Minister of Economic Affairs
(1952–1959)
Minister of Finance
(1958–1963) (1966–1967)
Prime Minister
(1966–1967)
Anti-Revolutionary Party
(1967–1980)
Christian Democratic Appeal
(1980–1982)
Dr. W.F. Duisenberg (op Schiphol), Bestanddeelnr 931-8478.jpg Dr.
Wim Duisenberg
(1935–2005)
1 January 1982 –
1 July 1997
(15 years, 151 days)
Minister of Finance
(1973–1977)
Labour Party
Nout Wellink.jpg Dr.
Nout Wellink
(born 1943)
1 July 1997 –
1 July 2011
(14 years, 0 days)
Treasurer–General
(1977–1981)
Christian Democratic Appeal
Netherlands politic personality icon.svg Dr.
Klaas Knot
(born 1967)
1 July 2011 –
Incumbent
(7 years, 193 days)
Independent

See also

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References

  1. toddwhitebloomb, Todd White. "Europe's Central Banks Begin Boosting QE Price Transparency". Bloomberg.com. Retrieved 2016-04-26.
  2. Ahmed, Asif (2010-07-02). "Analysis of the Mission Statement of the Commercial Banks of Bangladesh". Rochester, NY: Social Science Research Network. SSRN   1633225 .