SNS Reaal, the Netherlands’ fourth-largest bank by assets, has been nationalised at a cost of 3.7bn ($5bn) to bring stability to the Dutch financial sector.
The emergency bailout was necessary after the bank failed to find a buyer to come up with a rescue package by the 31 January deadline.
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SNS Reaal will receive a capital injection of 2.2bn from the Dutch government. 800m from an earlier aid package and 700m from the bank’s real estate assets will also be written off.
The Dutch government will extend 1.1bn in loans to SNS Reaal, along with 5bn in state guarantees.
Dutch banks will have to contribute an additional one-off levy of 1bn in 2014.
The bailout will increase the Dutch EMU deficit by 0.6% and EMU debt by 1.6%.
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By GlobalDataSNS Reaal has struggled after making heavy losses on property loans.
The Dutch finance minister, Jeroen Dijsselbloem, said nationalisation had been used as a last resort and that in the future banks had to be "far easier to separate".
He said: "Instead of an entire institution, only the parts of public relevance will have to be rescued.
"Legislation at the European level will have to ensure that in the future to the extent possible, the bill will be paid by private stakeholders."
The Dutch government said in a statement that savings deposited in the bank were safe.
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