Dutch banks are advising consumers to keep a stash of cash at home due to increasing geopolitical threats, according to the Netherlands Association of Banks (NVB). This marks the first time the banking sector has issued such guidance for households, De Telegraaf reported.
Following the holiday season, the NVB will convene with the rather oddly named Social Consultation on Payments (MOB) to discuss the matter in detail. The MOB includes representatives from the Dutch Central Bank, consumer organizations, and various industry sectors.
While the exact amount of cash to keep on hand hasn’t been specified, the NVB spokesperson indicated that a comprehensive advisory will be issued. “We’re working on a holistic approach to help people manage their finances in the event of disruptions to payment systems,” the spokesperson said. “This includes guidance on the amount and denominations of cash to keep, as well as other precautions like maintaining extra bank accounts or credit cards.”
The Dutch Central Bank (DNB) had previously flagged geopolitical tensions as a primary threat to the Dutch financial system in November, closely followed by cyber threats. DNB director Olaf Sleijpen emphasized the prudence of having cash on hand, particularly in the event of extended disruptions to ATMs and other payment services.
“We can’t assume that our digital payment systems will always be operational,” Sleijpen stated. “There could be situations where financial services are disrupted for extended periods. It’s about societal resilience. The government has outlined recommendations for emergency preparedness, and having some cash on hand is part of that.”
The Nibud, a Dutch consumer organization, has also weighed in on the matter. In 2021, they suggested keeping at least €50 in cash for emergencies, but recent advice indicates that a larger sum, sufficient for several days of essential purchases and possibly fuel, would be more prudent.
The vulnerability of electronic payment systems lies in their reliance on internet and electricity infrastructure, which could be targeted in attacks. While payments made with bank and credit cards in the Netherlands primarily rely on Visa and Mastercard networks, iDeal and direct transfers operate on a separate system.
