Nordea may be short over 60 billion kroner in capital

Bank seriously underestimated risk on loans to business customers.

Nordea has underestimated the amount risk in its corporate lending to the tune of some 30 – 60 billion kroner, according to a report in a Swedish newspaper.

The newspaper Svenska Dagbladet reported that it uncovered the shortfall in a memo from Finansinspektion, the Swedish equivalent of Danish financial watchdogs Finanstilsynet (FSA).

According to the report, the note suggests that if Nordea deliberately underestimated the risk in its lending, there could be a major scandal brewing. By underestimating the risk on its loans, Nordea will have been able to reduce the capital they are required to have available as security.

Deliberate?
The report in the Swedish paper said that Nordea’s estimate of risk to its business customers was far below what it has been historically, rising suspicions of deliberate manipulation. The memo allegedly shows that Nordea may be forced to increase its capital by 30-60 billion kroner to meet regulatory requirements.

READ MORE: Nordea posts record profits

Neither Nordea nor the FSA would comment on the memo, citing confidentiality, but a Nordea spokes person did say that the bank had more than enough capital onhand.




  • Today is 10 years from Copenhagen terrorist attack

    Today is 10 years from Copenhagen terrorist attack

    On February 14 and 15, the last terrorist attack took place in Denmark. Another episode occurred in 2022, but in that case, there was no political motive behind it

  • Enter Christiania: how the Freetown works

    Enter Christiania: how the Freetown works

    We all know Christiania and have been there at least once. But how does the Freetown work? How are decisions made? Can a person move there? Is there rent or bills to pay? British journalist Dave Wood wrote a reportage on Christiania for The Copenhagen Post.

  • The struggles of Asian women in Denmark’s labour market

    The struggles of Asian women in Denmark’s labour market

    Isha Thapa unfolds her research “An Analysis on the Inclusivity and Integration of South Asian Women in High-Skilled Jobs within the Danish Labor Market”. Thapa describes the systemic and social challenges these women face, ranging from barriers in social capital to cultural integration.

  • Parents in Denmark reject social media monitoring 

    Parents in Denmark reject social media monitoring 

    Most parents in Denmark reject using social media parental controls despite knowing about them. A new study questions the effectiveness of these tools in ensuring children’s online safety.

  • Analysis: we need a different education system for international children in Denmark

    Analysis: we need a different education system for international children in Denmark

    Data analyst Kelly Draper Rasmussen highlights that Denmark sees peaks in international migration during early childhood and high school years. However, with only one international education option, many families are forced to leave to secure different opportunities for their children.

  • Danish Refugee Council to lay off up to 2,000 staff

    Danish Refugee Council to lay off up to 2,000 staff

    After the anticipation from The Copenhagen Post, a press release by DRC has confirmed the plan to lay off thousands of employees in response to the recent halt of foreign aid spending by the Trump administration.