Deutsche Bank has given up its Netherlands banking license. From now on the bank will offer customers services from Frankfurt and via a Dutch branch instead of an actual subsidiary in the Netherlands. According to a news report, the Deutsche Bank transferred all the activities of its Dutch banking operations to the German AG. This was done retroactively with effect from 1st January this year. It involves about 9 billion euros in assets and almost 6 billion euros in deposits. With the scaling back from Netherlands, the bank’s clients’ deposits will be now under the German deposit guarantee scheme, instead of the Netherlands’. The bank’s employees in the Netherlands no longer fall under Dutch bonus legislation, but under European regulations. Deutsche Bank said it aims to operate internationally through branches, instead of subsidiaries. So customers who are active in multiple countries deal with one legal party. Operating through branches are also cheaper and more efficient than subsidiaries, the bank said.
