Klaas Knot, the outgoing president of De Nederlandsche Bank (DNB), concluded his 14-year tenure on March 20, expressing a sense of unfinished business. Stepping down next Monday, he passes the torch to Olaf Sleijpen, becoming a private citizen after leading the Dutch Central Bank through a period marked by significant economic upheaval.

Throughout his time at DNB, Knot navigated a series of major crises, including a financial crisis, a euro crisis, the COVID-19 pandemic, and the war in Ukraine. His leadership was further complicated by international events, such as those involving Donald Trump.

Knot’s appointment in 2011 was unexpected, with the cabinet choosing him over the presumed successor, Lex Hoogduin. This decision reflected dissatisfaction with DNB’s performance during the banking crisis, where billion-euro bailouts were required for ABN Amro and ING. The government sought to tighten bank supervision.

During his time at DNB, Knot earned a reputation for his analytical approach and his focus on the broader implications of financial risks. He advocated for banks to maintain larger buffers to absorb financial shocks.

Knot’s influence extended to European banking supervision, where he emphasized the importance of assessing the behavior and culture within financial institutions. He was known for his direct yet diplomatic approach, making it clear that there was no room for negotiation.

During the Euro crisis, Knot often disagreed with the measures taken by Mario Draghi, then director of the European Central Bank (ECB). Knot, viewed as a “hawk,” frequently voiced concerns about inflation and the need for countries to reduce their debts.

During the Corona and the energy crisis, Knot proved his ability to understand the art of central banking. He accurately assessed the economic impact of the pandemic and the energy crisis, even when his views differed from those of his own DNB and the ECB. His intuition and experience allowed him to influence policy decisions.

As he departs DNB, Knot’s future remains uncertain, though he has been mentioned as a potential successor to Christine Lagarde at the European Central Bank. While he remains focused on his duties at DNB, the possibility of a return to a prominent role in European finance looms.