Nationalised bank SNS has not been banned from competing with other banks on savings and mortgage interest rates by the European Commission, finance minister Jeroen Dijsselbloem confirmed on Wednesday.

The commission’s decision not to stop SNS from making ‘stunt offers’ marks a change in strategy for Brussels, which until now has stopped banks which have had state support from slashing interest rates in an effort to win more customers,the Financieele Dagblad said.

In the Netherlands this led to a lack of competition on the mortgage market where most of the big banks and savings institutions have had state support or have been nationalised.

‘It looks at the moment as if SNS will not be banned from taking the lead on pricing,’ Dijsselbloem told parliament. He did not give further details about other conditions slapped on the bank by Brussels but the FD says these are likely to include the sale of all or part of its insurance arm.