Miriam Mukuru
The Dutch minister for finance Steven Van Weyenberg called for tougher rules on bank liquidity in Europe and internationally, as well as a closer examination of risky Additional Tier 1 bonds.
In a recent statement to the Dutch House of Representatives, the minister asked for stricter requirements to address the impact of digitalization on liquidity, according to a Dutch government statement on Friday.
"It is important to address vulnerabilities in the banking sector and to pay attention to new risks," Weyenberg said. "For example, savers can withdraw their money even faster through digitalization."
"I believe that we should make international agreements to make banks even more resilient. I want to put this on the agenda in the EU."
The minister also advocated for the evaluation of AT1 bonds, which are issued by banks and act as safety buffers if a bank's capital levels fall below a certain threshold.
"That [AT1 bond] framework is complex and does not always seem to contribute to transparency and smooth resolution of banks in trouble," the statement said.
"It is important that measures to further strengthen the resilience of banks are coordinated at European and international level so that risks are tackled globally and there is a level playing field," it said.
Write to Miriam Mukuru at miriam.mukuru@wsj.com
(END) Dow Jones Newswires
04-23-24 0927ET
