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Danish government agrees on capital requirement for Danske Bank
October 7, 2013 / 4:07 PM / 4 years ago

Danish government agrees on capital requirement for Danske Bank

COPENHAGEN, Oct 7 (Reuters) - The Danish government has won political support to require Danske Bank, the country’s biggest financial institution, to have a minimum capital solvency ratio of 15 pct of risk-weighted assets, TV2 News said on Monday.

The government, led by Social Democratic leader Helle Thorning-Schmidt, agreed with the Liberal and Conservative parties to order a gradual increase in the capital requirement for the bank from a previous demand of 12 percent to 15 percent over a five-year period, starting in 2014.

The bank, which in June was ordered by a Danish regulator to change how it calculates its solvency ratio and to set aside more risk capital, already exceeds the requirement.

last year the bank had a capital adequacy ratio of 21 percent of risk weighted assets. The government has suggested that seven Danish banks be named Systemically Important Financial Institutions (SIFI), including Danske Bank. (Reporting by Mette Fraende; Editing by Greg Mahlich)

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