Moody’s reports: Outlook for Dutch banks remains stable
The overall outlook for the ratings of Dutch banks remains stable, reflecting the sector’s sound financial condition, the low risk profiles of the major banks and a robust regulatory environment but also a relatively low level of profitability, says Moody’s Investors Service in its new Banking System Outlook for the Netherlands.
Nonetheless, selective upgrades or downgrades remain possible and would likely be driven largely by potential ownership changes or acquisition-related developments.
Moody’s expects that the two large banks — ING Bank and Rabobank — will continue to dominate the market and that ABN AMRO will also remain of systemic importance despite the break-up of its operations, which will primarily impact its foreign activities — principally in Italy and Brazil — and its Global Wholesale and International Retail client businesses. ABN’s Dutch domestic retail and SME businesses will be integrated with those of Fortis Bank Nederland (Holding).
– www.theasianbanker.com (February 29 2008)–