On 22 January 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) issued a press release stating that it will be adopting a more data-driven approach and focus on the use of digital technologies in its supervision. DNB has also published its Supervision Outlook 2020.
DNB indicates that in 2020 it will strengthen its cooperation with the sector to build on knowledge of the impact and opportunities of technological innovations by way of the Innovation Forum (or iForum). The iForum was launched at the end of 2019 and is a joint partnership of banks, insurers, pension funds and payment institutions. DNB also notes that digitisation and new technologies such as artificial intelligence (AI) enable new products and services and that both new and established parties need to prepare themselves to respond adequately to a rapidly developing digital world. First priority should be given to the security, governance and quality of data. In response to these developments DNB is in the process of transforming into a “smart supervisor”. DNB aims to fully utilise its technological opportunities by automatising routine tasks where possible and by adopting a data-driven approach as part of its new supervisory methodology.
DNB’s Supervision Outlook 2020 provides for more detail on the above and describes DNB’s supervisory priorities for the year ahead, with respect to both prudential and integrity supervision. The Supervision Outlook among other things stresses that combating financial and economic crime continues to play a key role in its supervision and that in 2020 DNB will start their supervision of crypto institutions under the Fifth Anti-money Laundering Directive. Furthermore, DNB notes that sustainability is one of its other key priorities for 2020 and that it has anchored identification and control of climate risks to a large degree in its supervision of banks, insurers and pension funds.
In this context DNB has also published the DNBulletin titled “Data age calls for increased attention from the banking sector and DNB”, which among other things addresses the future of the banking sector.
View the press release, 22 January 2020.
View the Supervision Outlook 2020 (Dutch only), 22 January 2020.
View the DNBulletin, 22 January 2020.