The Banking Environment
Economic and political environment
The Netherlands was a founder member of the euro. The Dutch central bank, De Nederlandsche Bank N.V., forms part of the European System of Central Banks (ESCB).
The Netherlands has an advanced economy, which combines high income per head (USD26,000) with a fairly even income distribution. With exports and imports of goods and services together totalling more than 100% of nominal GDP, the life-blood of Dutch prosperity is foreign trade. Rotterdam is Europe's largest port; its industrial and distribution activities alone generate annual added value of some 10% of Dutch GNP.
78% of exports are to the EU and 58% of imports from it. Germany is by far the most important trading partner.
The country's geographical position at a crucial hub of Europe's transport system and the small size of its domestic market have made the Dutch economy one of the most open and outward-looking in the world, while the scarcity of natural resources and raw materials have turned it into a processing economy. Trade is instrumental to the manufacturing sector, which is dependent on imported materials. The international orientation of manufacturing companies is highlighted by the presence of well-known multinationals.
With half of the country lying below sea level, an unusual aspect of the Dutch economy is presented by the country's water defences. The Netherlands also benefits from significant natural gas resources, and is the fourth largest producer in the world after Russia, Canada and the US.
Banking in general
Since the end of the 1980s several bank mergers and the formation of financial conglomerates of banks and insurance groups have led to a reduction in the number of companies participating in the financial market.
Transaction banking in the Netherlands is highly automated; cheques are hardly used and cash is withdrawn primarily from ATMs, not over bank counters. Transaction fees tend to be low, and there are no lifting fees. Even the higher cross-border payment fees are moderated by the EU Regulation if the payment is in EUR within the EU and the sender supplies the bank with the beneficiary’s IBAN and BIC. Given that so much trade from the Netherlands is within the EU, this reduction in fees is significant.
Current accounts are in wide use for working capital purposes; they can do overdrawn and also attract credit interest.
Foreign currency accounts are available in a large number of currencies including USD, GBP, JPY etc., and they can also go overdrawn and earn credit interest.
There is no distinction in the way accounts are run if the holder is a resident or non-resident.
All kinds of investment and borrowing instruments are available for longer-term engagements: savings accounts, short and long term deposits, treasury bills etc.
Currency
Euro