On 16 November 2015, the Dutch Central Bank (De Nederlandsche Bank, DNB) published its Supervision Outlook 2016 (Toezicht Vooruitblik 2016), in which it sets out its objectives for 2016. The DNB also describes developments in the financial services sector and how these may impact different financial institutions, for instance low-rate interest for pension funds and insurers. In relation to insurers, the DNB will have a close look at the implementation of Solvency II and will assess business models and cost structures.
The DNB also emphasizes that integrity of financial institutions is a key issue. Based on its review of the systematic integrity risk analysis, the DNB is of the view that most financial institutions don’t have a complete overview of the integrity risks they face. Instead they tend to de-risk by ending relationships with high-risk clients which may in turn lead to risks to the financial system if they will turn to institutions with weaker control systems.
In addition, the DNB notes the technological developments of new business models and technology driven amendments to the structure of the financial sector. The DNB will investigate these developments as they might introduce unforeseen prudential and integrity risks. It also identifies cyber threats as an increasing risk.