De Nederlandsche Bank (DNB) imposed an administrative fine of EUR 15 million on de Volksbank N.V. for failing to comply with the Financial Supervision Act obligation to ensure sound business operations. The sanction relates to structural shortcomings that persisted during the period under review from 5 July 2018 to 11 October 2023; de Volksbank is a significant bank under direct prudential supervision by the European Central Bank (ECB), which asked DNB to open a sanctioning procedure. DNB found that de Volksbank did not adequately manage relevant risks, including credit and counterparty risks, capital risks and operational risks, constituting non-compliance with Section 3:17 of the Financial Supervision Act. Key deficiencies cited included weaknesses in credit and counterparty risk management systems, internal models for calculating own funds requirements, the remediation programme for those models, the internal capital adequacy assessment process and the management of outsourcing-related risks. DNB concluded these issues undermined the bank’s ability to understand and mitigate its risk exposures and called into question the reliability of its required capital quantification, with ineffective internal governance and controls as a main driver. In setting the fine, DNB cited the seriousness and duration of the breaches, the bank’s size and heightened culpability, including delays in remediation despite long-running supervisory pressure, while also taking account of remediation steps already initiated and the current management’s focus on remediation. De Volksbank has six weeks from receipt of the notification to lodge an objection.
De Nederlandsche Bank 2025-01-30
De Nederlandsche Bank fines de Volksbank EUR 15 million for prolonged failures in sound business operations
De Nederlandsche Bank fined de Volksbank N.V. EUR 15 million for non-compliance with the Financial Supervision Act, citing structural shortcomings in risk management and governance from July 2018 to October 2023. Deficiencies included inadequate management of credit, counterparty, capital, and operational risks. The fine reflects the seriousness and duration of breaches, the bank's size, and delays in remediation despite supervisory pressure.