Dutch bank nationalised

on 01/02/2013 17:25:43

The Netherlands has nationalised banking and insurance group SNS Reaal at a cost of €3.7bn - averting a threat to the Dutch financial system.

The Dutch state's intervention was prompted by "huge blunders" made by the bank's top management costing the taxpayer huge amounts of money.

The Finance Ministry said in a statement that savings deposited in the country's fourth-largest bank were safe.

SNS Reaal has suffered recurring losses in recent years linked to its Property finance sector.

SNS Reaal is considered a systemically important bank, meaning it is too important to be allowed to go bankrupt.