Another bank in danger of closing

Audit says Vestjysk Bank is on life support

Both an internal and external audit of the state-controlled Vestjysk Bank warns that there is a significant risk that the bank will shut down if it cannot get its accounts in order.

Both Vestjysk Bank's own auditor Michael Flohr Hansen, and external auditors from PricewaterhouseCoopers in Holstebro, have warned that the bank could very well go down this year.

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Significant uncertainty
“There is significant uncertainty that may cast significant doubt on its ability to continue operations,” read the audit.

The auditors pointed at new capital rules expected to come into force by the end of March, which they say will leave the bank below the requirements for solvency and mean that the bank will need to trim its balance sheet to stay afloat.