COPENHAGEN, June 24 Denmark's financial watchdog
has named six banks and mortgage lenders as large enough to be
considered as systemically important financial institutions.
The six are the market leader Danske Bank,
biggest mortgage lender Nykredit Realkredit, Nordea
Bank Danmark, Jyske Bank, Sydbank
and mortgage lender DLR Kredit.
The Danish Financial Supervisory Authority (FSA) will
monitor them more closely than other banks and they will have to
meet higher capital buffer requirements.
The specific capital level for each institution will be
published in the autumn, FSA said. These are expected to be
phased in gradually from 2015 to 2019.
A systemically important institution is a term financial
regulators use to categorise a bank that is large enough to pose
a threat to the stability of a country's financial system if it
runs into difficulties.
The Danish economy has been sluggish since a property bubble
burst in 2009 and more than 60 banks, mainly small ones, have
gone out of business since 2008. Some have been bought by other
banks while others went bankrupt.
But the country's biggest banks are strongly capitalised and
the FSA expects they will all be able to meet the capital
requirements, an FSA spokesperson told Reuters.
(Reporting by Ole Mikkelsen. Editing by Jane Merriman)