De Nederlandsche Bank (DNB) is responsible for safeguarding financial stability. More particularly, DNB contributes to defining and implementing the single monetary policy of the countries which have introduced the euro, promotes the smooth operation of the payment system, and supervises financial institutions and the financial sector. Consequently, DNB’s main duties can be described in the following six topics:
- Financial stability: DNB is committed to maintaining a smoothly operating financial system that is sufficiently resilient to shocks.
- Monetary policy: the core objective of the policy of the European Central Bank (ECB) is price stability. DNB contributes to the design and implementation of this monetary policy.
- Supervision: DNB works for a reliable financial system in which institutions meet their obligations.
- Oversight of payments systems: DNB exercises oversight of payment systems to ensure safe and reliable payment processing.
- Economic advice and research: DNB acts as an independent adviser to the Dutch government. Also, DNB contributes to sound economic policy-making on both national and international level, supported by scientific research.
- Resolution: if a bank fails despite stringent supervision, possible problems must be resolved in an orderly way. This is also known as resolution. Since 1 January 2015, DNB has been the national resolution authority for the Netherlands.