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Knot appointed Dutch central bank president

Knot appointed Dutch central bank president

Klaas Knot was named president of the Netherlands' central bank Friday, handing him a key role in revamping the country's oversight of the banking system still recovering from the global financial crisis.
The appointment, announced by Prime Minister Mark Rutte, also grants Knot a seat on the European Central Bank's governing council, where the Netherlands generally endorses German views on policy.
Knot, 44, replaces the retiring Nout Wellink on July 1.
Rutte praised Wellink as a "great man" with international experience _ he chaired the Basel Committee on Banking Reforms that has proposed new global standards for bank capitalization in the wake of the 2008 liquidity crisis.
However, Wellink was criticized at home for his domestic performance, as major Dutch banks collapsed or needed bailouts toward the end of his his second seven-year term as chairman.
After the worst of the crisis was past in 2008, the mid-sized DSB Bank collapsed abruptly in 2009 after an industry gadfly said its mortgage practices were predatory and oversight had failed.
Wellink initially maintained he had made no mistakes, but after a parliamentary investigation, he conceded oversight "had possibly could have been a little more and a little better, and for that part I want to offer apologies on behalf of our organization."
The country's popular Finance Minister Jan Kees de Jager ordered reforms.
Among other changes, the bank will now be subject to more external reviews, personnel will receive extra training, and persons in oversight functions will need to change jobs more frequently in order to prevent them from becoming complacent.
De Jager said Knot was his "first choice" for the president's job, describing him as a "strong, independent thinker."
Prime Minister Mark Rutte said Knot "is someone the Cabinet expects to give good leadership to the cultural change we want at DNB," referring to the Dutch acronym for De Nederlandsche Bank.
Somewhat ironically, Knot was head of the central bank's oversight policy division from 2004-2009.
He is now a high-level manager at the Netherlands' Finance Ministry. He has also worked as a professor at the University of Groningen, and briefly at the IMF before that.
Knot will receive less pay than Wellink, as de Jager has cut the post's annual salary to (EURO)315,000 ($450,000) per year from the (EURO)407,000 Wellink received.


Updated : 2021-10-21 19:11 GMT+08:00