Sign in Subscribe
Banking industry

The Consolidated Dutch Financial Sector Expands Abroad

Strategic Insights

— 1 min read

In the late 1980s and early 1990s, the Dutch financial sector underwent significant consolidation, driven by bank mergers and the formation of financial conglomerates. This led to a reduction in the number of companies participating in the financial market. As a result, the newly consolidated Dutch financial sector expanded rapidly overseas through mergers with and acquisitions of foreign financial institutions.

Key Takeaways:

  • The Nederlandse Middenstandsbank (NMB) and Postbank merged in 1989 to form NMB Postbank, which later merged with the Nationale Nederlanden insurance group to form the International Nederlanden Groep (ING) in 1991.
  • The large ABN and AMRO commercial banking groups merged to form ABN AMRO in 1990.
  • VSB-bank, a conglomerate of savings banks, teamed up with the Amev insurance group and Belgium's AG insurance group in 1990 to form the Dutch-Belgian Fortis group.
  • Rabobank, a large co-operative group, took a 50% share in the Robeco investment group in 1996 and expanded its product portfolio rapidly in recent years.
  • ING bought the UK investment bank Barings in March 1995 and took control of Banque Bruxelles Lambert, Belgium's second-largest bank, in 1997.
  • ABN AMRO bought Citicorp's global futures operations in 1997.
  • The Dutch retail banking market has become virtually impregnable for foreign institutions.
  • The Dutch stock market, the Amsterdam Stock Exchange (AEX), is a medium-sized source of equity finance, with the three largest companies (Royal Dutch/Shell, Unilever, and ING) accounting for around 50% of total stock market capitalization.

Statistics:

  • The merger between NMB Postbank, Nationale Nederlanden insurance group, and ING resulted in the largest Dutch financial conglomerate, ING, with a total market capitalization of over €150m.
  • The AEX's bond segment typically accounts for around two-thirds of total turnover.
  • Foreign listings on the AEX bond segment have increased significantly, driven by the decrease in government borrowing requirements.
  • Derivatives trading on the Amsterdam Exchange's European Options Exchange (EOE) accounted for around €100bn in turnover in 2000.

Sources:

  • Country Profile from the Economist Intelligence Unit

Read more