Dutch banks are advising consumers to carry cash at home due to increasing geopolitical threats, a spokesperson for the Association of Netherlands Banks (NVB) said. This is the first time that banks have issued such advice. In Belgium, no similar advice has been issued for the moment.
Dutch Defense Minister Ruben Brekelmans said on Sunday that the Netherlands must prepare for war scenarios due to the Russian threat. He also advised citizens to always have some cash at home. In October, the Dutch Banking Association (NVB) already recommended having cash at home in the event of a cyberattack, reports The Latest News. The official notice on this point is expected to be published in the first quarter in the Netherlands. The date is not yet known. The NVB spokesperson stressed that this advice aims to guide consumers on how best to manage their financial affairs in the event of disruption to payment systems.
“Don’t sow panic”
In Belgium, the banking sector and the government believe that such a recommendation is not necessary. “We don’t want to sow panic,” says Isabelle Marchand, spokesperson for Febelfin, the federation of the Belgian banking sector, after consultations with banks and the government. “We are not receiving any signal from the government and the banks encouraging people to keep cash at home,” she adds, quoted by the Flemish daily. “The geopolitical situation is serious, but we have known about it for several years now. She hasn’t changed. We would also like to emphasize that cybersecurity is a top priority for banks and that they are well prepared in this regard.”
Encouraging citizens to withdraw cash can have consequences for the banking system. This can create a panic, with consequences of bank run and a destabilized banking sector. The NVB emphasizes, however, that there is currently no sign of a cash rush in the Netherlands following these announcements.
Risk of burglaries
“Additionally, there are risks associated with keeping cash at home,” Febelfin warns. The Union of Insurers in the Netherlands also made a similar statement on Wednesday. “Cash at home is normally covered by your home insurance, but there are limits,” he says. Compensation for stolen cash generally varies between 250 and 500 euros, depending on the insurer. In the event of larger sums stolen, they will therefore not be covered.
Belgium
