The Dutch government has nationalised the banking and insurance company, SNS Reaal. Retail savers with deposits up to 100,000 euros are protected.
The Dutch government has nationalised the banking and insurance company, SNS Reaal.
Finance Minister Jeroen Dijsselbloem announced on Friday the company has been fully taken over by the state at a cost of more than $US5 billion.
SNS Reaal was the subject of a bailout costing 750 million euros ($US935 million) bailout in November 2008, but continued to struggle because of bad property investments.
The BBC reports its finances had weakened to the point that they were below legal solvency limits.
Retail savers with deposits up to 100,000 euros are protected.
SNS Reaal is the fourth biggest banking and insurance company in the Netherlands. Chief executive Ronald Latenstein and chairman Rob Zwartendiik have stood down.
In January, the European Commission blocked a plan by three other banks, ABN Amro, ING and Rabobank, to help SNS with a capital investment.
The Commission said that ABN and ING had themselves previously received state aid.
