DNB Warns Financial Sector to Fortify Against Geopolitical Risk & Strengthen Resilience Amid Rising Tensions

As international tensions escalate, the financial sector in the Netherlands faces mounting risks that demand a swift, strategic response. In its supervisory strategy for 2025-2028, De Nederlandsche Bank (DNB) warns that Dutch financial institutions—banks, insurers, and pension funds—must bolster their resilience against an increasingly unpredictable global landscape.

"For some years now, the Netherlands and Europe have not been able to take favorable international relations for granted," said Steven Maijoor, a DNB Executive Board Member, in a stark call to action. According to Maijoor, today’s geopolitical climate calls for vigilance and forward-thinking in the financial sector. “Financial institutions need to strengthen their defenses and be prepared for financial impacts that could arise unexpectedly as geopolitical situations evolve,” he emphasized.

With risks rapidly evolving, one clear area of focus is digital resilience. In the face of rising cyber threats, Maijoor highlighted the need for enhanced cyber defenses, welcoming the recent implementation of the Digital Operational Resilience Act (DORA). This European regulation, crafted to shore up digital resilience across financial institutions, sets out rigorous standards for managing risks, particularly in working with third-party ICT providers. The goal is clear: a fortified sector, ready to withstand cyberattacks that are increasingly being wielded as geopolitical tools.

“Cyber resilience isn’t just about having strong defenses; it’s about recognizing the reality of today’s threat landscape,” Maijoor stressed. Financial institutions are encouraged to take action now, not only to protect their own stability but also to prevent disruptions that could ripple across the entire Dutch economy.

From Free Trade to Protectionism: Adapting to a Shifting Global Economy

The financial sector’s challenges are not limited to the digital domain. DNB’s study highlights a notable shift from international cooperation to a more fragmented world marked by protectionism and new geopolitical blocs. Trade barriers, supply chain disruptions, and increased sanctions are reshaping the way financial institutions operate, introducing fresh layers of complexity and risk.

For a nation like the Netherlands, where trade is deeply woven into the economy, these shifts hit particularly hard. Maijoor pointed out that Dutch financial institutions are especially vulnerable to unexpected economic shocks that can arise from sanctions, political tensions, or shifts in global alliances. Institutions now face a more challenging landscape where the risks aren’t confined to familiar financial metrics but extend to sudden geopolitical changes.

Staying Ahead of Unpredictable Risks

In response, DNB’s strategy calls on financial institutions to strengthen their resilience and prepare for the unexpected. By maintaining adequate financial buffers and developing robust risk management frameworks, these institutions can build the resilience needed to face potential shocks. It’s about more than survival—it’s about ensuring the sector remains stable and ready to adapt, even as new challenges emerge.

With an eye on the future, DNB’s warning is ultimately a call to action. For Dutch financial institutions, the path forward lies in vigilance, adaptability, and a proactive stance toward risk management. In today’s unpredictable world, resilience isn’t just a safeguard; it’s the foundation of long-term stability and success.

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