Albert Roell, chairman of the Managing Board of the Dutch Kas Bank, proposes using pension funds to help solve the economic crisis in the Netherlands. (Chris Hondros/Getty Images)
“Put pension assets ‘to work’ by investing a part of the 600 billion Euros in ‘bank funds.’ The banks’ illiquid investments can be placed in these funds in order to remove them from their balance sheets, and allow banks to return to their role as providers of credit to the business sector," said Albert Röell.
“The liquid investments must be removed from the banks’ balance sheets wherever possible. As soon as the balance sheets have been restored, the lack of mutual trust will disappear and banks can again focus on their core duty: the extension of credit to the consumer and business sector,”
"The government can also make a contribution by revising the strict prevailing legislation relating to the recovery plans of pension funds and their assets.”
The biggest pension funds in the Netherlands, ABP, reacted positively to the suggestion but said that the government first needs to steer a clear course. It remains to be seen whether other pension funds are equally enthusiastic as it might involve government meddling and greater risks.
