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.

TOP STORIES

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

  • How internationals can benefit from joining trade unions

    How internationals can benefit from joining trade unions

    Being part of a trade union is a long-established norm for Danes. But many internationals do not join unions – instead enduring workers’ rights violations. Find out how joining a union could benefit you, and how to go about it.

  • Internationals in Denmark rarely join a trade union

    Internationals in Denmark rarely join a trade union

    Internationals are overrepresented in the lowest-paid fields of agriculture, transport, cleaning, hotels and restaurants, and construction – industries that classically lack collective agreements. A new analysis from the Workers’ Union’s Business Council suggests that internationals rarely join trade unions – but if they did, it would generate better industry standards.

  • Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    The numbers are especially striking amongst the 3,477 business and economics students polled, of whom 31 percent elected Novo Nordisk as their favorite, compared with 20 percent last year.

Want to advertise your job with CPH Post?

Contact us

Jobs