The Dutch State Treasury Agency is responsible for treasury banking (in Dutch: “Schatkistbankieren”). The DSTA is the central treasury for all ministries and state agencies, social security funds, a large number of (semi) public organisations and local authorities. These organisations keep their public liquid assets at an account at the Ministry of Finance. Bundling of cash flows prevents simultaneous borrowing and lending within the central government. All organisations still have their accounts at commercial banks. This account is only used for the execution of their daily payments.
Participating organisations
Organisations that participate in treasury banking are those with a legal or public responsibility, and who receive funds from the central government for the execution of their tasks. Some of these organisations, for example ministries, social funds and decentralised governments, are obliged to participate. Other organisations, such as schools and public museums, can choose to participate in treasury banking on a voluntary basis.
All entities participating in treasury banking are independent in the execution of their (legal) responsibilities, with the exception of their treasury functions. They are obliged to keep all of their public financial assets with the Ministry of Finance, on a current account and/or in one or more deposits. Most organisations also have the possibility to apply for a current account credit facility and to borrow from the Ministry of Finance for their investments.
Treasury banking
All incoming or outgoing transactions of the participants take place using their payment account at a commercial bank. At the end of each day, a credit balance on the payment account will be swept away to the current account held at the DSTA. If the payments account shows a debit balance at the end of the day, the DSTA will pay off the debit balance by transferring money from the client's current account at the DSTA to the payments account. This daily regulation of the balance is called zero-balancing. As a result, no money is held at commercial banks overnight.
Some participants can also put money on deposits for any period between two days and thirty years. When needed, deposits can be redeemed at their market value before the expiration date. Also, most participants are allowed to borrow from the Ministry of Finance. Loans are provided for only after the Ministry that is responsible for the organisation concerned provides a guarantee for repayment of the loan and interest charges.
Detailed information on treasury banking is only available in Dutch. The table below gives an overview of the interest rates applicable to the different treasury banking facilities. A general remark here is that negative interest rates are not passed through to the participants.
|
Ministeries |
Social security funds |
State Agencies |
Legal entity with a statutory task (RWT) |
Local authorities |
|
|
Current account |
0 |
€STR |
€STR |
€STR |
€STR |
|
Current account overdraft |
N.A. |
€STR |
€STR |
€STR |
N.A. |
|
Deposits |
|||||
|
2 days - 12 months |
N.A. |
N.A. |
DTC/DSL |
DTC/DSL |
DTC |
|
over 12 months |
N.A. |
N.A. |
DSL |
DSL* |
DSL |
|
Loans |
N.A. |
N.A. |
DSL |
DSL |
N.A. |
* A bonus rate is not applicable anymore.