Danish banks “good” on stress tests, FSA says
Danish banks are doing well and are well equipped to withstand another potential economic crisis, reports Politiken.
The results were drawn from a review conducted by the Finanstilsynet, Denmark’s Financial Services Authority (FSA), on four of the country’s largest banks – Danske Bank, Nykredit, Jyske Bank and Sydbank.
“For Denmark the results show that the biggest institutions are strong enough to handle a negative economic development,” Ulrik Nødgaard, the director of FSA, said in a press release.
Europe’s banks not as strong
This review follows the recent findings by the European Banking Authority (EBA) on the health of 123 of the largest banks in the euro zone, which Denmark is not a part of.
However, in cooperation with the EBA, the FSA decided to take on the same such stress tests to determine the financial health of the country’s top four banks.
The FSA conducted its “most comprehensive inspection ever at the corporate level,” it said in a press release.
Twenty-four EU banks failed EBA’s stress tests, including nine Italian banks, three Greek banks and three Cypriot bands, reports the BBC.
Additionally, in an overlapping test undertaken by the European Central Bank, 25 EU banks failed its test.