AMSTERDAM (Reuters) – The Dutch central bank, DNB, has no new plans to stress test non-bank financial institutions for liquidity, a spokesperson told Reuters.
The Bank of England said on Tuesday it would stress test non-bank financial institutions such as investment funds for the first time next year, to apply lessons from the near-meltdown in Britain’s pension fund sector following a budget announcement in September that sent asset prices tumbling.
“DNB has no plans for new initiatives with regard to liquidity stress-test non-bank financial institutions,” a central bank spokesperson said in response to questions by Reuters.
As part of the central bank’s regular supervision, pension funds are required to control liquidity risks adequately and report regularly what the impact of shocks in interest rates and currencies are on their liquidity risks, the spokesperson added.
The Netherlands’ $2 trillion pension fund industry is home to the largest volume of assets in the European Union, according to the Organisation for Economic Co-operation and Development.
(Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
