If DNB is of the opinion that further issues of registered covered bonds jeopardise healthy balance sheet ratios, DNB may decide to force a bank to cease issuing them, pursuant to Section 40i(2) of the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft - Bpr).
By virtue of Section 10(6) of the Decree on Administrative Fines in the Financial Sector (Besluit bestuurlijke boetes financiële sector - Bbbfs), it may impose fines on an issuing bank if that bank ceases to satisfy the requirements set in Sections 40d-j of the Bpr.
DNB may also choose to cancel the registration of the bank issuing registered covered bonds. In that case, that bank may not issue any further covered bonds under the programme in question, and DNB may refuse to register the issuing bank or a category of bonds for a five-year period.
Before taking such decisions, it will first hear the issuing bank, in compliance with the General Administrative Law Act (Algemene wet bestuursrecht - Awb).