DNB Separates Personal and Corporate Banking Amid Rule Changes

DNB ASA (DNB), Norway’s largest bank, will separate its personal- and corporate-banking businesses into two new units to boost competitiveness amid regulatory changes.

The new Personal Banking Norway division will serve the lender’s personal clients in Norway, while Corporate Banking Norway will provide services to small and medium-size companies, Oslo-based DNB said in a statement today. Trond Bentestuen will head Personal Banking Norway and Kjerstin Braathen will lead Corporate Banking Norway. The firm will also start a wealth- management unit, including private banking, and said it will establish risk management as a separate support arm.

Nordic banks face stricter capital rules as governments move to safeguard taxpayers against potential losses in the financial industry. Banking clients’ behavior is also changing, with more and more customers using the Internet for their banking needs. DNB reported 10 million online bank visits a month last year, while mobile banking services were used about 7 million times every month, the Norwegian lender said today.

“Both the regulatory framework for the financial-services industry and customer needs are subject to rapid change,” DNB Chief Executive Officer Rune Bjerke said in the statement. “In order to maximize our competitive power in the future, we are adapting our organization to reflect these changes.”

To contact the reporter on this story: Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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