The situation for Denmark's community banks is very different from that of the country's biggest lenders, like Danske Bank, when it comes to tapping bond markets.

Jan Kondrup, director of Denmark's Association of Local Banks, says most of his group's 70 members are meeting their capital requirements through equity. 

Meanwhile, Danske Bank and Nykredit, Denmark's biggest mortgage bank, both issued contingent convertible debt this year to meet capital requirements.

"All banks have a challenge with customers saving and repaying their debts," Kondrup told Bloomberg. "A few need to work with their capital structures.”

Marginally better
Members of the association are showing some signs of improvement. The lenders delivered a profit in the first quarter, compared with a loss a year earlier.

"We expect to see even more progress" for the second quarter,” Kondrup said. "Writedowns are falling, costs have stabilised and the top line has stabilised."

Denmark has lost almost twice the number of credit institutions as the European average. Fifteen percent have closed or been taken over, compared with 8.7 percent for the EU, according to the European Central Bank.

Denmark has lost more than 60 small and medium-sized banks since 2008.