Con
fiden
tialRec
over
y P
lann
ing
The
Dut
ch e
xper
ienc
e
Em
mel
ine
van
Heu
kele
m, W
orld
Ban
k/F
inS
acse
min
ar V
ienn
a, 2
3 A
pril
2015
1
The
Net
herla
nds
had
its'fa
ir sh
are'
of t
he
finan
cial
cris
is …
Sep
tem
ber
2008
Lehm
an fa
ilure
Take
ove
r D
utch
par
tsF
ortis
/AB
N A
MR
O (
EU
R 1
7 bn
)
Oct
ober
–N
ovem
ber
2008
EU
R 1
0 bn
capi
tali
njec
tion
ING
Gro
up
Cap
itali
njec
tion
SN
S R
EA
AL
+ A
EG
ON
Bac
k-up
faci
lity
ING
’sA
lt-A
port
folio
Janu
ary
2009
2
DS
B
and
mor
e …
.
Sup
port
dur
ing
cris
is a
s %
GD
P
…le
adin
gto
heav
y re
lianc
eon
go
vern
men
tsup
port
3
Rat
iona
le fo
r in
tens
ified
sup
ervi
sion
(f
igur
es 2
008-
2012
)
5
How
tocl
imb
back
upw
ards
?
Tak
ing
a po
sitiv
epe
rspe
ctiv
e
Wha
tles
sons
can
we
draw
from
thes
e fa
ilure
s?
Par
t 1: L
esso
nsfr
omS
NS
RE
AA
L (c
ase
stud
y)
Par
t 2: D
NB
rec
over
y pl
anni
ng fr
amew
ork
6
Con
fiden
tialPar
t 1: S
NS
RE
AA
L C
ase
stud
y
7
SN
S R
EA
AL
Dut
ch G
over
nmen
t nat
iona
lizes
S
NS
Rea
al
Maj
or e
vent
bec
ause
:•
Firs
t use
of n
ew In
terv
entio
n A
ct•
100%
writ
e of
f of s
hare
hold
ers
and
'bai
l-in'
of s
ubor
dina
ted
debt
ho
lder
s th
roug
h ex
prop
riatio
n•
Cap
ital i
njec
tion
usin
g ta
xpay
er’s
mon
ey
•C
osts
are
par
tly a
ttrib
uted
to th
e ba
nkin
g se
ctor
thro
ugh
a on
e-of
f ex
-pos
t res
olut
ion
tax
8
Abo
ut S
NS
Rea
al
SN
S R
eaal
is d
esig
nate
d as
sys
tem
ical
ly
impo
rtan
t for
the
Dut
ch e
cono
my
(D-S
IB)
•4th
larg
est D
utch
ban
k •
EU
R 3
5 bl
nD
GS
cov
ered
dep
osits
•~
7,5
% o
f tot
al D
utch
DG
S c
ov. d
epos
its
•T
otal
bal
ance
she
et:
EU
R 8
2 bl
n
•R
eaal
is th
e 3rd
larg
est l
ife in
sure
r an
d 5th
larg
est n
on-li
fe in
sure
r
In 2
006,
SN
S a
cqui
res
‘Bou
wfo
nds
Pro
pert
y F
inan
ce’ f
rom
AB
N A
mro
•C
once
ntra
ted
port
folio
of c
omm
erci
al re
al
esta
te lo
ans
(10-
15%
of b
alan
ce s
heet
)•
Por
tfolio
siz
e: E
UR
8.5
bln
(Jun
e 20
12)
In 2
008,
SN
S R
eaal
rece
ived
a E
UR
750
m
ln c
apita
l inj
ectio
n fr
om th
e S
tate
9
Man
yop
tions
exp
lore
d
•M
any
priv
ate,
pub
lic/p
rivat
e an
dpu
blic
sol
utio
nsw
ere
expl
ored
but
coul
dno
tbe
impl
emen
ted
due
to•
Inte
rcon
nect
edne
ss(b
oth
finan
cial
and
oper
atio
nal)
with
inth
e gr
oup
•La
ckof
pos
itive
econ
omic
valu
ean
dpr
ivat
e bu
yers
•C
ompe
titio
nis
sues
•F
inan
cial
sta
bilit
yco
ncer
ns
•N
atio
naliz
atio
nas
ulti
mum
rem
ediu
m
10
Rec
apita
lizat
ion
Loss
es o
n P
rope
rty
Fin
ance
•
Pro
pert
y F
inan
ce lo
an p
ortfo
lio tr
ansf
erre
d to
bad
ban
k
Rec
apita
lizat
ion
of S
NS
Rea
al•
Exp
ropr
iatio
n of
sha
res
and
subo
rdin
ated
deb
t hol
ders
(le
adin
g to
cap
ital r
elie
f)
•D
irect
cap
ital i
njec
tion
•C
apita
l inj
ectio
n fo
r ba
d ba
nk•
Gua
rant
ee fo
r ba
d ba
nk
•T
empo
rary
liqu
idity
sup
port
for
hold
ing
Larg
e am
ount
of p
ublic
mon
ey n
eede
d fo
r na
tiona
liza
tion
•In
terv
entio
n po
wer
s cu
rren
tly n
ot s
uppo
rted
by
a re
solu
tion
fund
•E
xpro
pria
tion
not a
pplie
d to
sen
ior
debt
•G
over
nmen
t has
levi
ed a
res
olut
ion
tax
in 2
014
11
Less
ons
lear
nt•
Rec
over
y M
easu
res
�M
ake
sure
an
adeq
uate
set
of m
easu
res
is a
vaila
ble
�Id
entif
y in
terc
onne
cted
ness
in g
ener
al (e
.g. f
inan
cial
, suc
h as
dou
ble
leve
rage
) (E
BA
RT
S 2
015)
�N
ote
that
bar
riers
are
diffi
cult
to a
ddre
ss w
hils
t com
pany
is in
dis
tres
s an
d th
at m
easu
res
are
less
effe
ctiv
e if
rum
ours
are
alre
ady
in m
arke
ts
•T
imel
ines
s �
Impo
rtan
ce o
f ear
ly w
arni
ng s
igna
ls a
nd in
tens
ified
mon
itorin
g
•C
omm
unic
atio
n
�Im
port
ance
com
mun
icat
ion
plan
�D
iscl
osur
e re
quire
men
ts c
an ta
ke p
riorit
y ov
er n
eed
for
prud
entia
l co
nfid
entia
lity
ther
eby
trig
gerin
g a
cris
is o
r fr
ustr
atin
g op
tions
12
Less
ons
lear
nt
•In
dica
tors
�R
equi
rea
broa
dse
t of b
oth
qual
itativ
ean
dqu
anta
tive
indi
cato
rs�
Set
trig
ger
leve
ls a
re h
it ‘in
tim
e’
�A
ccep
t tha
tsom
ein
dica
tors
sw
itch
toam
ber
or r
ed in
BaU
�It
help
sif
bank
san
dsu
perv
isor
s ar
e le
ssre
luct
anti
n ac
tivat
ing
a pl
an, a
s th
isw
illle
ad to
mor
e in
tens
e m
onito
ring,
info
rmed
disc
ussi
onan
dap
prop
riate
cris
is m
anag
emen
t go
vern
ance
�A
lso
incl
ude
forw
ard
look
ing
indi
cato
rs
13
Less
ons
lear
nt
•M
any
othe
r le
sson
s as
wel
l (ou
tsid
e of
Rec
over
y P
lann
ing)
:�
EU
wid
e in
trod
uctio
n of
a b
ail-i
n to
ol d
esira
ble
�E
x an
te r
esol
utio
n an
d D
GS
fund
ing
nece
ssar
y to
shi
eld
sect
or a
nd
taxp
ayer
s at
EU
leve
l�
‘Gap
’ bet
wee
n ec
onom
ic re
ality
(vi
abili
ty)
and
crite
ria fo
r us
e of
re
gula
tory
/ in
terv
entio
n to
ols
(bac
kwar
d lo
okin
g)�
For
futu
re b
ank
mer
gers
/acq
uisi
tions
, tak
e in
to a
ccou
nt im
pact
on
reso
lvab
ility
(de
clar
atio
n of
no
obje
ctio
n pr
oces
s)�
Bet
ter
to p
repa
re th
an to
“ga
mbl
e fo
r re
surr
ectio
n”
14
Pub
lic p
ress
ure
Gen
eral
ly, t
he S
NS
RE
AA
L ca
se h
as c
lear
ly in
crea
sed
the
publ
ic p
ress
ure
on
bank
s an
d th
e de
velo
pmen
t of R
RP
for
othe
r D
utch
SIB
s
15
Bal
anci
ngac
t•
Goi
ngco
ncer
n vs
gone
conc
ern
•T
rade
-off
�E
nhan
cing
reco
vera
bilit
y &
res
olva
bilit
y co
mes
at a
cos
t�
Cer
tain
mea
sure
ssi
gnifi
cant
lyre
duce
over
all p
rofit
abili
tyan
dca
nbr
ing
abou
tope
ratio
nalr
isks
, whi
lsto
bjec
tive
of r
ecov
ery
plan
ning
is to
redu
ceth
e lik
elih
ood
of fa
ilure
�O
ptio
nalit
yis
key
16
Con
fiden
tialPar
t 2: D
utch
RP
Fra
mew
ork
17
Rec
over
y pl
anni
ng
Man
y qu
estio
ns a
rose
ove
r th
e ye
ars:
•H
ow to
mak
e su
re b
anks
und
er
supe
rvis
ion
are
wel
l pre
pare
d?
•A
lso
in B
aUsi
tuat
ions
, whe
n no
t all
stak
ehol
ders
are
con
vinc
ed o
f the
nee
d fo
r a
reco
very
pla
n?•
Wha
t sho
uld
a re
cove
ry p
lan
cons
ist o
f?
�D
NB
dev
elop
ed a
RP
fram
ewor
k�
Mai
n go
al to
impr
ove
the
over
all r
esili
ence
an
d ba
nks’
pre
pare
dnes
s to
ade
quat
ely
resp
ond
to a
nd r
ecov
er fr
om s
ever
ely
stre
ssfu
l env
ironm
ents
, and
, as
such
, si
gnifi
cant
ly re
duce
the
likel
ihoo
d of
failu
re
18
Ste
p by
ste
p
•D
NB
sta
rted
req
uirin
g R
ecov
ery
Pla
ns in
201
2 •
Req
uire
men
t app
lies
to a
ll lic
ense
d ba
nks
in th
e N
ethe
rland
s*•
Firs
t dem
ande
d it
from
the
four
larg
est D
omes
tic S
IFIs
(in
rol
e as
ho
me
auth
ority
)•
Tak
ing
a ris
k ba
sed
appr
oach
sin
ce th
en…
•A
pply
ing
sim
plifi
ed o
blig
atio
ns fo
r LS
Is (
EB
A)
�T
he v
ast m
ajor
ity o
f ban
ks u
nder
our
sup
ervi
sion
has
a p
lan
in
plac
e
* Le
gal b
asis
in th
e N
ethe
rlan
ds: S
ectio
n 3:
17 o
f the
Fin
anci
al S
uper
visi
on A
ct,
Sec
tion
23C
of t
he D
ecre
e on
P
rude
ntia
l Rul
es fo
r F
inan
cial
Und
erta
king
s an
d D
NB
Fra
mew
ork.
Im
plem
enta
tion
of th
e B
RR
D is
exp
ecte
d en
d 20
15 in
the
Net
herl
ands
.
19
DN
B’s
Fra
mew
ork
for
Rec
over
y
•D
efin
ition
and
obj
ectiv
es•
Wha
t doe
s a
reco
very
pla
n co
nsis
t of?
•A
ppro
ach
and
resp
onsi
bilit
ies
•T
empl
ate
•La
test
ver
sion
4.0
Ex
ecu
tive
sum
ma
ry
Des
crip
tion
of
the
grou
p
Cri
sis
ma
na
gem
ent
gover
na
nce
Nea
r-d
efa
ult
sce
na
rio’s
Ea
rly
wa
rnin
g a
nd
tri
gger
s
Rec
over
y m
easu
res
Rec
over
ab
ilit
y a
sses
smen
t
Ma
na
gem
ent
Info
rma
tion
Sy
stem
Su
mm
ary
ta
ble
of
the
reco
ver
y
pla
n
20
Bui
ldin
g bl
ocks
21
Rec
over
y m
easu
res
•A
dequ
ate
set o
f rec
over
y m
easu
res
is k
ey•
Pla
n is
not
aim
ed to
fore
cast
the
fact
ors
prom
ptin
g th
e cr
isis
but
to a
sses
s w
heth
er
�T
he o
ptio
ns to
cou
nter
it a
re s
uffic
ient
ly ro
bust
�T
heir
natu
re is
suf
ficie
ntly
var
ied
to fa
ce a
wid
e ra
nge
of s
hock
s of
di
ffere
nt n
atur
e•
Als
o ne
ed n
on fi
nanc
ial t
ools
suc
h as
co
mm
unic
atio
n an
d op
erat
iona
l sta
bilit
y
22
Ban
k re
spon
sibi
lity
•It
is th
e ba
nk th
at d
eals
with
fina
ncia
l str
esse
s an
d po
tent
ial f
ailu
re•
Inst
itutio
n is
inde
pend
ently
cap
able
of a
vert
ing
a pe
ndin
gfa
ilure
•
As
such
, its
houl
den
sure
bank
’sre
adin
ess
tota
ckle
iton
its
own
stre
ngth
•R
esol
utio
nau
thor
ities
do n
otin
terv
ene
�A
rec
over
y pl
an is
ther
efor
e ow
ned,
dev
elop
ed a
nd m
aint
aine
d by
the
inst
itutio
n�
Cre
ate
awar
enes
s w
ith b
ank’
s m
anag
emen
t and
thro
ugho
ut
orga
niza
tion
•C
ontr
ibut
ion
to m
ore
resi
lient
sec
tor
23
SS
M a
ndS
RM
brin
gch
ange
s…
•E
urop
ean
legi
slat
ion
(BR
RD
tobe
impl
emen
ted
shor
tly)
•E
urop
ean
auth
oriti
es(E
CB
, SR
B)
•D
utch
SI’s
unde
rdi
rect
SS
M s
uper
visi
on
24
Diff
eren
t “w
ho”
•R
ecov
ery
Pla
nnin
g in
Eur
opea
n co
ntex
t•
As
of 4
Nov
embe
r E
CB
in c
harg
e of
app
rox
6000
ban
ksin
the
Eur
o zo
ne•
Rol
esan
dpa
rtie
s�
Join
t Sup
ervi
sory
Tea
m, N
CA
’s, N
RA
’s, h
ost s
uper
viso
rs•
Glo
bal p
layi
ngfie
ld (
G-2
0, F
SB
, Bas
elC
omm
ittee
)
-F
inS
ac(b
roch
ure)
:
25
Diff
eren
t “ho
w”
26
Sim
ilar
“wha
t”
•R
egul
ator
yT
echn
ical
Sta
ndar
ds
and
Gui
delin
es(c
onte
nt)
•S
ingl
e S
uper
viso
ryH
andb
ook
•E
xcep
tfor
two
chan
ges
•P
lus:
‘bes
t pra
ctic
es’ r
emai
n
27
Suc
cess
fact
ors
A.
Mak
e su
reba
nks
trea
trec
over
y pl
anni
ng a
s in
tegr
alpa
rt o
f bus
ines
s �
Em
bedd
ing
in B
usin
ess
As
Usu
alB
.A
lign
plan
with
exis
ting
gove
rnan
ce, p
roce
sses
and
plan
s�
Bus
ines
s co
ntin
uity
, con
tinge
ncy
fund
ing
plan
s, r
isk
appe
tite
fram
ewor
kC
.C
ontin
uous
proc
ess
�M
onito
ring
met
rics
(mon
thly
) an
dre
gula
rup
date
s w
ithm
ajor
cha
nges
D
.Lo
cali
nvol
vem
entb
ank
(in a
nyev
ent t
hrou
ghm
onito
ring)
and
cont
act
betw
een
supe
rvis
ors
(and
judi
cial
s)E
.S
imila
tion
exer
cise
sor
‘dry
runs
’F
.M
anag
emen
t inf
orm
atio
n (s
yste
ms,
dat
a qu
ality
)
28
Suc
cess
fact
ors
And
also
: Sup
ervi
sory
effo
rts
•D
iscu
ssw
ithan
dch
alle
nge
the
bank
•D
ive
into
bank
spec
ific
cont
ent
•C
heck
and
chal
leng
e, a
lso
at d
iffer
ent
leve
ls w
ithin
the
bank
•N
o ea
sy a
nsw
ers…
29
Pos
itive
expe
rienc
esov
er th
e ye
ars.
.
Wha
tdid
reco
very
pla
nnin
g br
ing
usun
tilno
w?
•S
ourc
e of
val
uabl
ein
form
atio
n, n
ew in
sigh
ts•
Lear
ning
exp
erie
nce
with
othe
rin
stitu
tions
and
supe
rvis
ors
(G20
/FS
B,
CM
Gs,
EB
A, C
olle
ges)
�H
ow to
effe
ctiv
ely
deal
with
finan
cial
str
ess
and
pote
ntia
lfai
lure
?•
Impr
oved
awar
enes
s at
ban
ks, p
ositi
vere
spon
sive
ness
•A
ndm
ore…
30
Any
que
stio
ns?
Sho
uld
you
have
any
furt
her
ques
tions
at a
late
r st
age,
ple
ase
cont
act
Ms
Mr
E.C
. (E
mm
elin
e) v
an H
euke
lem
e.c.
van.
heuk
elem
@dn
b.nl
+31
20
524
2994
Tha
nk y
ou
Dis
clai
mer
: The
info
rmat
ion
in th
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