Dutch private banks Insinger, Theodoor Gilissen merge

Dutch private banks Theodoor Gilissen and Insinger de Beaufort are merging and will continue as one private bank with some 22 billion euros in assets, the banks announced on Tuesday, NU.nl reports. Insinger de Beaufort, currently still in the hands of BNP Paribas, is being taken over by KBL European Private Bankers - the company behind Theodor Gilissen. The transaction is expected to be completed later this year, and the actual merger will take place in the first half of 2017. Stakeholders and regulators still have to approve the deal. Until the merger is complete, the two banks will continue operating separately from each other. The banks disclosed little further details on the deal. It is unclear how much money is involved, which name the new bank will take or who will chair the merged company. "The proposed merger is a perfect match that will bring tangible benefits to both existing and new clients. This allows us to further expand our services and do more investments in achieving an optimal client experience", Insinger CEO Peter Sieradzki said. "We complement each other well in the provision of specific services to wealthy individuals, foundations, associations and institutional investors", Theodoor Gillisen chairman Tanja Nagel commented. Insinger was founded in 1779. The bank has about 230 employees working in branches in Amsterdam, The Hague, Eindhoven and London. Insinger manages just over 10 billion euros in assets. Theodoor Gilissen was founded in 1881. It employs 200 employees in offices in Amsterdam, Eindhoven, Enschede, Groningen and Rotterdam. The bank manages over 12 billion euros in assets. According to the Financieele Dagblad, it seems likely that more small private banks will merge in the future. Because while private banks offer benefits of clear organization and personal contact, the financial sector is subject to so many new and existing regulations that consolidation seems the only logical answer. "In the Netherlands there is increasing legislation and regulations and their living up to them increases costs. Moreover, you have to invest in IT, for example, to remain 'state of the art'. That is more advantageous with a broader client base", Nagel commented to the newspaper.