The great financial crisis of 2007-2009 again illustrated the enormous costs of financial imbalances. Since the crisis, advanced economies have suffered a cumulative output loss of 33% relative to its pre-crisis, an increase in public debt amounting to 21% of GDP and direct fiscal costs...

This study examines the emergence of financial stability as a key police objective. It discusses the underlying trends in the financial system, as well as the role of finance in relation to money, the real economy and public policy. Financial stability is defined in terms of its ability to help...

The capital rules that banks have to comply with have become much more stringent since the financial crisis. The financial crisis brought home the fact that the capital buffers of banks were too small to absorb shocks. Financial aid from the state was required on a white scale to avoid more...

Confidence in banknotes is entirely based on trust in the currency, the organisation behind it and the authenticity of the note. The authenticity may be verified by an authenticity check, one of the four main user functions of a banknote; the others are value recognition, handling and...

The overall costs of the payment system to society are considerable. These costs depend on the relative usage of the available payment instruments, which differ in the costs that each entails to market participants in the payment chain. In the Netherlands, debit card payments have become less...

This paper studies confidence and trust in the Netherlands, especially with regard to the financial sector. Confidence and trust are qualitative, emotion-based variables which seems to be a powerful force in the economy. The aim of this paper is to gain a better understanding of the relationship...

Having accurate information on cash usage is essential for monitoring the substitution process of cash by cards and for assessing the cost efficiency of the payment system. Moreover, estimates on cash usage reflect the transaction demand for cash. This is useful for central banks which are...

Globalisation and changes in financial systems across the world are causing marked changes in processes of financial regulation and supervision and are also calling into question the existing arrangements for protecting depositors and investors. This paper examines the factors prompting the...

The financial crisis demonstrated severe shortcomings in existing global, European and national regulatory and supervisory frameworks for the financial system. Although most attention was paid to regulatory flaws, the failure to prevent a near collapse of the financial system also triggered a...

Over the last decades, Dutch households have seen a strong growth in both their pension savings and equity in their homes. At the same time, their mortgage debts have also increased. On balance, their net wealth grew while their balance sheets also expanded. In view of the ageing population, the...