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Netherlands: SNS Reaal Capital Injection, 2013

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The property finance division of SNS Reaal N.V., a financial conglomerate comprising SNS Bank, the fourth-largest Dutch bank, and Reaal Insurance, the second-largest Dutch life insurer, was heavily exposed to losses in the real estate sector from 2008 to 2010. In January 2013, a growing bank run and the revelation of substantial losses forced the government to intervene. The Minister of Finance rejected proposals from the bank and a private equity firm, and nationalized SNS Reaal on February 1, 2013. Upon nationalizing the firm, the Dutch state injected EUR 2.2 billion into the firm in the form of ordinary shares, with EUR 1.9 billion going to SNS Bank and EUR 300 million going to the overarching holding company. Existing shareholders and most subordinated debt holders of the firm lost their entire investment. NL Financial Investments (NLFI) exercised the shareholder rights associated with the injected capital. NLFI remains the sole shareholder of the banking division, renamed De Volksbank in 2017.

Suggested Citation

  • George, Ayodeji, 2024. "Netherlands: SNS Reaal Capital Injection, 2013," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 6(3), pages 374-396, March.
    • Handle: RePEc:ysm:ypfsfc:v:6:y:2024:i:3:p:374-396
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    File URL: https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1585&context=journal-of-financial-crises
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    Keywords

    capital injection; eurozone; Netherlands;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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