The Rise of the Dutch financial sector

The Dutch have built a reputation for international trade over many centuries. This has helped develop its economy into one of the most open economies in the European Union. Second only to Germany, the Netherlands is regarded as the strongest country in terms of financial stability. The Netherlands is seen as the gateway to Europe. The central geographical position of the Netherlands, its excellent connectivity, a well-educated, multilingual workforce, its favorable tax climate and its membership with the EU and Euro are some of the reasons why more than 6000 overseas-based companies have established their offices in the Netherlands.

The Netherlands as a financial center

The Netherlands is known for its high quality financial and business services sector and is home to some of the largest pension funds in the world.

Moreover, the Dutch financial sector is one of the best worldwide in the field of retirement management, financial logistics and as a trading venue.

The Netherlands Foreign Investment Agency (NFIA) helps foreign companies, including financial institutions, establish their business in the Netherlands and take advantage of the Dutch business environment as a strategic base to expand in Europe.

The Holland Financial Centre

The Holland Financial Centre (HFC) is a joint public/private partnership that aims to develop initiatives aimed at preserving an internationally competitive financial industry in the Netherlands. The main objective is to retain existing and create new jobs in the industry.

Starting up an organisation in the financial industry is relatively complex. To assist startups, the HFC has developed several facilities. One of these is the HFC Plaza, a center for starting ventures located in the heart of the financial center, the Zuidas. It offers full service office space and brings together education, research, starters and established companies for less than the current Dutch market price.

Another facility is the Financial Markets Office, offering Dutch and international financial market parties a single point of contact, enabling quick and effective response to questions regarding general information about the country’s financial markets. 

Foreign investments
While foreign investments may not rate as high in terms of the Euro, the number of institutions opening a European headquarters, representative office or sales department continues to increase. As of December 2010, almost 650 financial institutions were registered in country. Of these, the majority (500) are EU credit institutions offering cross-border services in the Netherlands. The remaining are either a bank with a full banking licence received in the Netherlands or branches of a credit institution.

Overseas banks in the Netherlands

The involvement of overseas banks in the Dutch banking sector has surged over the last two years. After taking over part of ABN AMRO, RBS Holdings NV became the largest foreign bank in the Netherlands. And the expansion of HBOS and BNP Paribas into the mortgage banking sector and the acquisition by Deutsche Bank of a large portion of ABN AMRO’s commercial banking activities resulted in the dramatic growth of foreign banks in the market. Asian financial institutions in the Netherlands include Bank of China, Industrial and Commercial Bank of China, Tata Capital, Bank of Beijing and Cavanagh Capital.

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Tags: Netherlands Foreign Investment Agency, European Union, Holland Financial Centre