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6.10.2009 – At the beginning of 2008, the Dutch bank wanted the DSB to strengthen its capital balance sheet. DSB Bank had too many products and services that would not fit within the scope of the DNB. DNB thus gave rise to the EUR 75 million loan granted by DSB Bank to the DSB Holding company, and this loan now seems to have played a decisive role in the collapse of DSB Bank.
Following the DNB’s recommendation to sell activities to DSB Beheer, DSB Bank sold the units for an amount of EUR 75 million. The transaction was not concluded with an external party because DSB Beheer was owned by Van Dirk Scheringa. Some parties questioned this loan on the grounds that DSB Beheer also manages football club AZ. DSB Bank lent the purchase price to DSB Beheer because DSB management did not have sufficient resources to finance the acquisition. Sceptics found that Dirk Scheringa financed his own enthusiasts in this way, and therefore find it incomprehensible that the supervisors did not intervene.
It was only this year that the Dutch Central Bank became aware that it was virtually impossible for DSB to repay the loan. The alarm bells ringed even more loudly that the DSB Bank auditors, Ernst & Young, did not wish to issue an auditor’s report for the 2008 financial year.
The refusal to issue an auditor’s report for the 2008 financial year is based on the fact that there were doubts as to the continued existence of DSB Bank. In the previous years, 2007 and 2008, no dividend was paid to the shareholders. DSB Bank stated that it was in the process of changing its business model and that it would pay dividends again in the coming years. The accountancy firm questioned this and did not provide any explanation.
DNB revalued the DSB Bank reserves, which consist of mortgages. This led to a reduction in reserves, and the regulator demanded that DSB Bank write off the EUR 75 million loan in one go. This depreciation was clearly too high for DSB, which no longer had enough reserves to pay for it. Visit here to find out more A1 Credit Money lender