One of the worries most tourists and visitors to foreign countries such as Netherlands have is on the issue of safe banking. They wonder how safe it is to bank in Netherlands. Many have in fact been led to believe that placing their money overseas is very risky as the money simply vanishes with time. The great news is that Netherlands is one of the safest countries in which you can bank. The bank accounts are protected and secured by bank deposit insurances. Banks need to be authorized by the appropriate body, before being allowed to operate in Netherlands, therefore to avoid the risk of being duped, you are advised to confirm the authority of a bank before doing business with them. Banks proffer a range of services from loans to savings packages and from mortgages to investment account. While accessing a bank, it is also of utmost importance to research on the conditions carried by a particular service or package.
Registration and Authorization
For any bank to operate in the Netherlands, it needs authorization from DNB (Central bank of Netherlands). Every authorized bank (local or foreign) get registered under the Act on the supervision of the Credit System 1992, thus before you patronize any bank, it is important to verify and check that it is registered from the registry of banks. However, some foreign banks may obtain Authorization from another EU country. This is valid in Netherlands. So, a bank as such will be supervised by supervisors of its home country and not the DNB, but the bank would have to be registered in the register of banks with DNB.
No matter the service or product a bank offers, they all come with conditions. It is safe to research and understand those conditions. The type of condition varies: The general banking conditions highlight the rights and duties which the account holder needs to exercise while banking with them, these rights and duties may vary from bank to bank. The product conditions highlights the conditions attached to a particular product or service, this may include: mobile banking, internet banking, private banking, fixed term deposit, securities services or mortgage loan. Financial products or services which are complex come accompanied with a key feature document which details the properties of such product or service. These documents are regularly supervised by the Authority for the Financial Market (AFM) in Netherlands. However, it is important to note that banks are free to offer whatever service or product they choose to and what conditions to attach to them. DNB has no authority over such decisions.
Supervision of Banks
The DNB supervises banks in Netherlands through their financial reports (and other information) , which are required to be submitted. This supervision however does not give a guarantee against bankruptcy, it only reduces the risk.
Hence Banking in Netherlands would serve to be a safe experience, as checks have been placed to ensure that every citizen and visitor to Netherlands, who does business with a bank, gets the optimum satisfaction he desires.