De Nederlandsche Bank

De Nederlandsche Bank NV (DNB) is the central bank of the Netherlands. Founded by King William I in 1814, it is part of the European System of Central Banks (ESCB). De Nederlandsche Bank is a public limited company (Dutch: naamloze vennootschap, abbreviated NV) whose everyday policy is overseen by the Governing Board. Being a public limited company, DNB has a Supervisory Board (Dutch: Raad van Commissarissen).

De Nederlandsche Bank
HeadquartersAmsterdam
Established25 March 1814 (1814-03-25)
Ownership100% state ownership[1] (1948–present)
PresidentKlaas Knot
Central bank ofthe Netherlands
Reserves8 840 million USD[1]
Succeeded byEuropean Central Bank (1999)1
Websitednb.nl
1 De Nederlandsche Bank still exists but many functions have been taken over by the ECB.

Until 1999 and 2002, the national central bank was responsible for issuing the first old original classic former national Dutch currency, the Dutch guilder. Its functions, responsibilities, duties, and powers were taken over by the European Central Bank (ECB) when it became part of it when it adopted the Euro Currency on 1 January, 1999 digitally and on 1 January, 2002 physically.

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). As a part of the ESCB, DNB is co-responsible for the determination and implementation of the monetary policy for the eurozone, besides being a link in the international payment system. As an independent public body, DNB exercises prudential supervision of financial institutions.[2]

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

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

  • Within the framework of the ESCB, the Bank shall contribute to the definition and implementation of monetary policy within the European Community (EC). The Bank has the objective to maintain price stability. Without prejudice to this objective, the Bank shall support the general economic policy in the EC.
  • The Bank shall hold and manage the official foreign reserves, and shall conduct foreign-exchange operations.
  • The Bank shall collect statistical data and produce statistics.
  • The Bank shall promote the smooth operation of payment systems; it shall take care of the banknote circulation.
  • The Bank shall supervise banks, investment institutions and exchange offices.
  • The Bank may, subject to permission by Royal Decree, perform other tasks in the public interest. The European Central Bank (ECB) may also ask the Bank to perform extra 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.[3] 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.

Head office

The bank was established from the start on Oude Turfmarkt, where it occupied 17th-century houses. In the 1860s, a purpose-built head office, designed by architect Willem Anthonie Froger, was erected on the same location and inaugurated in 1869. Nearly a century later in 1968, as the bank has left the building for its new seat, it was taken over by the University of Amsterdam which had long been established just nearby, and subsequently repurposed as the location of the Allard Pierson Museum, which opened there in October 1976.[4]

In the 1960s, a new head office complex was constructed on Frederiksplein and inaugurated by Queen Juliana in May 1968. Architect Marius Duintjer's stark design of 1961 consisted on a low square base and a rectangular office tower. In the late 1980s, as the bank was running out of space, it was complemented with a second, oval tower designed in 1984 by architects Jelle Abma and Marc a Campo, whose construction was finished in 1989. In 2008, Marc a Campo designed a further extension by adding an extra floor to the square base. In a comprehensive renovation during the early 2020s, the oval tower was demolished and the base remodeled to return the building to an exterior appearance more similar to the original one of the 1960s.[5]

List of presidents

President of De
Nederlandsche Bank
Term of office Previous experience(s) Party
Paul Iwan Hogguer 1814-1816 Independent
Jan Hodshon 1816-1827 Independent
Jaques Teysset 1827-1828 Independent
Jacob Fock 1828-1835 Independent
Willem Mogge Muilman 1835-1844 Independent
Abraham Fock 1844-1858 Independent
Hendrik Croockewit 1858-1863 Independent
Willem Mees 1863-1884 Independent
Nicolaas Pierson 1885-1891 Liberal Union
Norbertus van den Berg 1891-1912 Independent
Gerard Vissering 1912-1931 Independent
Leonardus Trip 1931–1941 Independent
Meinoud Rost van Tonningen 1941-1945 National Socialist Movement
Leonardus Trip 1945–1946 Independent
Dr.
Marius Holtrop
(1902–1988)
1 May 1946 –
1 May 1967
(21 years, 0 days)
Independent
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.
Wim Duisenberg
(1935–2005)
1 January 1982 –
1 July 1997
(15 years, 151 days)
Minister of Finance
(1973–1977)
Labour Party
Dr.
Nout Wellink
(born 1943)
1 July 1997 –
1 July 2011
(14 years, 0 days)
Treasurer–General
(1977–1981)
Christian Democratic Appeal
Dr.
Klaas Knot
(born 1967)
1 July 2011 –
Incumbent
(11 years, 245 days)
Independent

See also

References

  1. Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
  2. toddwhitebloomb, Todd White (4 April 2016). "Europe's Central Banks Begin Boosting QE Price Transparency". Bloomberg.com. Retrieved 26 April 2016.
  3. Ahmed, Asif (2 July 2010). "Analysis of the Mission Statement of the Commercial Banks of Bangladesh". Rochester, NY: Social Science Research Network. SSRN 1633225. {{cite journal}}: Cite journal requires |journal= (help)
  4. "Our Buildings". Allard Pierson Museum.
  5. "Renovation of DNB's head office". De Nederlandsche Bank.
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