The Dutch Central Bank (DNB) does not know whether its supervision of banks, insurers, pension funds and trust offices has any effect. This is apparent from research carried out on behalf of the Ministry of Finance that was sent to the House of Representatives on Tuesday afternoon. The DNB must keep a more structured record of the effect of a supervisory control, because so far this has ‘not been very successful’.
The investigation was conducted by the KWINK Groep consultancy and is part of the five-yearly evaluation of the regulators AFM and DNB. The investigation into the AFM regulator was also sent to the House of Representatives on Tuesday.
The tone of the DNB investigation is generally mild. DNB is doing well across the board: ‘DNB is a professional and thorough supervisor, which supervises the financial sector on the basis of elaborate and well-thought-out strategies’.
But the research also cracks critical notes. For example, the supervisor focuses on managing risks, possibly losing sight of the human dimension. The ‘parliamentary investigations into implementation and childcare allowance can also provide a supervisor such as DNB with inspiration to examine its own actions’. According to the researchers, DNB focuses too much on the institutions they control and pays too little attention to the people who work there.
DNB may lose sight of the human dimension in risk management
Another point of attention, according to the advice, is so-called ‘data-driven’ working. This is the new showpiece in the world of supervision, enforcement and investigation and it is based on the assumption that organizations – such as the police, the Tax Authorities and also the regulator DNB – for example, on the basis of a mountain of (personal) data requested from the institutions they monitor. can start.
However, requesting and using (personal) data is subject to strict privacy legislation and organizations regularly go wrong here. Whether DNB has blundered in the field of privacy is not stated in the investigation. But the researchers emphasize that the regulator should not randomly request information. “It should be clear in advance for what purpose data is being requested.” The investigation emphasizes that DNB must cooperate more closely with the regulators ACM, AFM and the Dutch Data Protection Authority (AP), the latter having expertise in the field of privacy. A recommendation from the report: DNB must make agreements with the AP about requesting data.
DNB “broadly recognizes itself well in the findings of the report,” she writes in a letter to the House of Representatives. She sees the recommendations and points for attention “as an opportunity” to do her job even better. The regulator itself writes about requesting data that it will give “priority” discussions with the AP.
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