Don’t Panic. That is the message to the market from the Dutch government after its latest intervention to help shore up a bank.
ING will benefit from a 10 billion euro cash injection, following rumours it was running out of capital.
But the banking and insurance firm is not in big trouble according to the Netherlands’ Finance Minister. Wouter Bos insists ING needs the boost simply to withstand market forces in extraordinary economic times. And he rejected comparisons with Dutch-Belgian bank Fortis, which was dismantled this month with its Dutch assets nationalised by the Netherlands government.
It was about to fail, the minister argues.
“That is not at all the case here,” he said, describing ING as a “healthy company.”
The Dutch government is not alone in stepping in over ING and Fortis. Several British and Swiss banks have tapped similar state funding lifelines in the past week.
ING struck a deal with the Dutch government and central bank after suffering hefty losses on Friday.
And so far, at least, the aid package appears to have done the trick – with the bank’s shares recovering strongly on the Amsterdam stock market today.