Too big to fail: Six most important banks identified

Government committee identifies Danske Bank, Nordea, Nykredit, Jyske Bank, Sydbank and BRFkredit as ‘systematically important financial institutions’

39 percent of the Danes want to study near where they reside (photo: iStock)
March 14th, 2013 3:29 pm| by admin
facebooktwittergoogle_pluspinterestmail

A government committee has identified Denmark’s six most important financial institutions and recommended them for additional oversight and regulation.

The six banks are Danske Bank, Nordea, Nykredit, Jyske Bank, Sydbank and BRFkredit

The list of systematically important financial institutions, or SIFI, was handed to the growth and business minister, Annette Vilhelmsen (Socialistisk Folkeparti), who wrote in a press release that the government would take the recommendations under consideration.

“The government broadly backs the committee’s findings,” Vilhelmsen wrote. “A strengthened regulation of the SIFI is essential in order to minimise the risk of future financial crises. These institutions are so large that they can affect the whole financial system and economy if they end up in trouble.”

The committee recommended that the SIFI be subject to extra safeguards, such as increased demands for capital and liquidity, demands for good leadership, crisis plans and increased oversight.

The committee also recommended that new tools be developed to tackle SIFIs that end up in trouble in order to minimise the damage.

Vilhelmsen added that the increased regulation of the SIFIs was in line with new banking regulations recently agreed upon by European finance ministers.

The committee’s report will now be sent for public consultation with a deadline of April 19.

The committee was composed of members of Nationalbanken, the Business and Growth Ministry, the Finance Ministry, the financial oversight agency Finanstilsynet, and independent experts.

A sixth of Danes would welcome English as an official language (photo: iStock)
A sixth of Danes would welcome English as an official language
There are more proficient speakers of English than any other language, and ...
The temperature of the beer can be reduced from 33 to 9.5 degrees C in just 110 seconds (photo: iStock)
Rockwool super beer cooler being tested at Roskilde Festival
We've all been there: walking around a festival with a warm beer in our han...
The 'Happy' hit-maker worked the crowd with a music-medley dating back to his N.E.R.D days (photo: Ella Navarro)
Pharrell Williams rocks Roskilde with happy-go-lucky vibes
Pharrell Williams took the Roskilde Orange Stage by storm last night in a ...
Danske Bank has been co-operating with ITC Infotech, one of the fastest growing tech companies in India, for eight years (photo: Istock)
Danske Bank changes co-operation with Indian IT department
Danske Bank is taking more control over its IT support centre in Bangalore...
In May, burglars stole computers worth 250.000 kroner from a technical school in Kolding (photo: Pixabay)
Every second school in Denmark burgled last year
Over half of the schools in Denmark were burgled last year, according to t...
Aage Krampe (tallest at the back) works hard on behalf of immigrants in Denmark (photo: Immigrationlaw.dk)
Immigration lawyer blasts new asylum proposal
The government's new plan to make it less attractive for asylum-seekers to ...