Carl Deconinck
Dutch Banks will advise people to keep cash at home because of the tense international situation, a spokesperson of the Dutch Banking Association (NVB) has said.
The NVB announcement on December 11 marked a historic first for banks to make such a recommendation, while also working on advice on how to handle money if account holders cannot easily access their accounts.
Insurance companies have warned about the risks of theft involved in having significant cash to hand.
After the Christmas holidays, the NVB said it would discuss the matter with the Social Consultation on Payment Transactions, a group that includes representatives from social organisations, the hospitality industry and SME Netherlands, which represents small and medium-sized enterprises
The NVB told the national news agency ANP that it was working on recommendations for how people should manage their money in light of increased geopolitical threats. These are expected to be presented in the first months of 2025.
“It could be about cash, for example, in what denominations and how much it should be. But also about keeping an extra bank account or credit card,” an NVB spokesperson said.
To counter any fears regarding the banking system, the spokesperson stressed that banks were “very well prepared” for all kinds of threats such as cyber-attacks, ensuring that customers’ savings were always safeguarded.
“Cyber resilience has been a top priority for banks for years. Banks inform each other about incidents, analyse them jointly and share effective countermeasures,” the spokesperson added.
While banks are reportedly well-prepared for cyberattacks, the Dutch National Bank considered in June 2022 that such attacks were one of the biggest risks to the Dutch financial system.
Experts also stated earlier this year that a cyberattack on the country’s energy network was “only a matter of time.”
If energy supplies or the internet were taken out, digital payment would become very hard.
Czech Republic institutions have been targeted by an ongoing Russian cyber-attack since last year, according to the Czech foreign ministry. https://t.co/RbhCFgOc87
— Brussels Signal (@brusselssignal) May 3, 2024
Defence minister Ruben Brekelmans said on December 8 on Dutch TV show WNL op Zondag the Netherlands must prepare for all possible war scenarios due to the Russian threat. He also advised keeping some cash at home at all times.
Cash is widely accepted as a method of payment, despite the rise of digital payments, while alternatives such as gold or cryptocurrencies are not.
Insurers were less thrilled about the call to keep cash at home. A spokeswoman for the Dutch Association of Insurers (Verbond van Verzekeraars) told ANP that cash at home was generally covered by your home insurance but she warned there were limitations.
According to her, compensation for stolen cash typically ranged from €250 to €500, depending on the insurer. “If you have large sums of money at home, this could lead to disappointment in the event of a burglary.”
The spokeswoman further stressed that it was often difficult to prove the exact amount of cash stolen after a break-in, which complicated the process of filing a claim.
Additionally, the public call to keep cash in the house could convince criminals to try and take it, she added.
“The advice is to carefully review the terms and conditions of your home insurance policy and to realise that cash is often only covered up to a certain amount,” the spokeswoman concluded.
The hack left workers in the affected ministries without access to a variety of services, including email, on their mobile phones. https://t.co/pZsyJi4oX8
— Brussels Signal (@brusselssignal) July 25, 2023
The Netherlands has been developing plans for emergency preparedness for its citizens for several years now but the concept has gained more traction recently.
Since 2022, the Dutch Government has been actively promoting citizen preparedness for various emergencies.
It launched a campaign called Denk Vooruit (Think Ahead) to encourage citizens to be ready for emergencies.
The government advised citizens to have to hand an emergency kit with essential items such as enough drinking water and non-perishable food for several days, a battery-powered radio, flashlights with extra batteries, a first-aid kit, copies of important documents, some cash and essential medications.
This initiative aimed to boost societal resilience and ensure that individuals could sustain themselves for at least 72 hours in the event of a major emergency or disaster.