Jan Geert Schouwstra DNB Netherlands DGS practice in The Netherlands Type Year Amount payed in million Number of clients General bank 2005 225 1200 General bank 2008 ID: 931800
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Slide1
Resolving an Internet Only Bank
Jan Geert SchouwstraDNB - Netherlands
Slide2DGS practice in The Netherlands
Type
Year
Amount
payed (in million €)Number of clientsGeneral bank200522,51.200General bank20080,225Internet bank20081.645145.000General bank20093.500380.000
Use of
the deposit
guarantee scheme (DGS)
past 10 years
:
Slide3Internet Bank
3
Slide4Internet Bank
4
Slide5DGS for this Internet Bank (1)
CharacteristicsOnly one product
Only savings (with
high
interest)No deficitsNo mortgages, no investments, no credit cardsPayments to a bank account given in advance 5
Slide6DGS for this Internet Bank (2)
Steps/measures/actions: Multidisciplinary steering committee
Application form
Web based application
External auditorHiring peopleProcedures - manualWorkplace – workstations – furnitureCall centerCommunicationEverything you have to do for payout 6
Slide7DGS for this Internet Bank (3)
Were we satisfied?Yes
But ….
Some things
could be better, let me explain 7
Slide8Too much paperwork
8
Slide9Take up on archives
9
Slide10Very long throughput time
10
Slide11Complex audit
11
Slide12A lot and diversity of people
12
Slide13DGS for an other bank
13
Slide14future: a change is necessary
Starting point for DNB in 2010:
Payment within 20 days
NO paper
Computerized processing, judgment and paymentBanks are responsible: now!Payment only to bank accountsNo settlement with debtsNo difference between an internet bank and a normal bank 14
Slide15Process (simplified)
15
Website
data
Slide16What did we (DNB) do
Built a new application
Give instructions to banks for delivering
a file
to DNB (same format, same structure)Periodically testing files from banksInternal manual and proceduresContracts with third parties Yearly Report of Findings from auditor Bank16
Slide17Report of Findings auditor
Is the process OK for delivering a correct and
complete DGS
file on time?
What are the relevant risks?How are the risks controlled?Control measures incorporatedAspects: processing pipeline items; calculating interest; accrual of the balancesExistence of these control measures and do they work?Give key data in the report. 17
Slide18Process if DGS is necessary
18
BANK
DNB
DEPO- SITORDNB
Slide19Process if DGS is necessary
19
BANK
DNB
DEPO- SITORDNBBank failure / bankruptcyDNB activates DGSBank processes pipeline itemsBank calculates interestBank compiles the file and transmits it with an auditors opinion to DNBTime needed: 7 days
Slide20Process if DGS is necessary
20
BANK
DNB
DEPO- SITORDNBDNB loads the file in their application and will check consistency and quality criteriaDNB construct the single customers view (CSV) for each person or companyApplication calculates the claimWeb portal will be loaded with CSV and the decision paper of the payoutTime needed: 6 days
Slide21Process if DGS is necessary
21
BANK
DNB
DEPO- SITORDNBDigital Identity = DigiDUse the web based application
Slide2222
CLICK ON
After entering
www.dgs
....nl you see this screen
Slide2323
Log on
MY NAME IS JAN
MY SECRET PASSWORD
Slide2424
notification
by
text message (phone)XHEYWTD763next
Slide2525
Screen with personal information; if OK next screen
Slide2626
decision
Ready
for
paymentInformation of claim, account and decision DNB
Slide27Process if DGS is necessary
27
BANK
DNB
DEPO- SITORDNBDNB send the information to Equens that will pay out the amount to the depositorTime needed: less than 1 dayDNB gives the liquidator information: the payouts
Slide28Activities during Peacetime
28Preparations for every bank:Follow the DNB manual
Test files
Investigation auditor
Preparations by DNB:Web based application up to dateAssessment files and report auditor bankContracts
Slide29DNB Topics for next year
29Testing files of banks
Adjust application for foreign branches
Renew manual banks
Renew manual for DNBRenew contracts….….….
Slide3030
Slide31Resolving an Internet Only Bank
Jan Geert SchouwstraDNB - Netherlands