New ‘Basel 4’ capital requirements for banks will impact Dutch mortgages

DutchNews, December 8, 2017

New capital requirements for banks, known as Basel 4, will have a major impact on the Dutch financial services sector, Dutch media said on Friday. 

The European central bank declared on Thursday that agreement had been reached reviewing the post crisis Basel 3 regulations. Basel 3 required the banks to add equity to their balance sheets and Basel 4, as the revisions are know, will further add to the requirements. 

According to the Dutch central bank in the Financieele Dagblad, the Dutch banks are a combined  €14bn short of meeting the new capital requirements. That means banks will be more restricted in what they can do and what risks they are prepared to take. 

‘It will have a major impact,’ central bank official Paul Hilbers, one of the two Dutch negotiators, told the FD ‘You have to compare it with the average combined annual profits of €6bn posted by all the large banks in the last few years.’ 

Rabobank chief financial officer Bas Brouwers is quoted as describing the new rules as ‘absurd and irrational’ by the Volkskrant. 

Mortgages

In particular, Basel 4 is likely to have an impact on the Dutch mortgage system by reducing the amount people can borrow – the loan to value ratio – because banks will have to further minimise their risks. The ltv Dutch rate, now 100%, is one of the most generous in Europe.

However, as the new rules won’t come into effect until 2020, and will be phased in over five years, the impact is likely to be muted, the Volkskrant said. 

Nevertheless, from January, home buyers will only be able to borrow up to 100% of the value of their home, but the Dutch market regulators – the central bank and AFM – want this to be reduced to 90%, further reducing the risk to banks. 

Such a change, which is politically highly sensitive, would require first time buyers to bring in some €25,000 in cash to buy a home, the paper said.

Related Article:

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems  (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it),  Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse),  Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”