Dutch Central Bank Seeks Buffer Between State And Nationalized Bks

The Dutch government should create a 'buffer agency' between the state and Dutch financial institutions that are nationalized or receive state aid, the president of the Dutch central bank, Nout Wellink, said Thursday.

At a press conference, Wellink said such an agency would prevent the state from meddling in the daily operations of these companies, in a reference to the political row that arose from the welcome bonus ING's (INGA.AE) new Chief Financial Officer Patrick Flynn received.

The president said this kind of political interference is undesirable, as it could hurt the competitiveness of these companies.

Wellink said the agency should be based on U.K. Financial Investments, or UKFI, the British state-owned agency that holds and controls the shares of several nationalized and state-supported banks in the U.K.

The Dutch government currently owns 100% of Fortis Bank Netherlands and the Dutch units of ABN Amro. Insurer Aegon (AEG) and bancassurers ING (INGA.AE) and SNS Reaal (SR.AE) received state aid.

-By Ykje Vriesinga & Maarten van Tartwijk; Dow Jones Newswires; [phone]; [e-mail]