Danske Bank Told to Add $18 Billion to Risk-Weighted Assets
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Danske Bank A/S, Denmark’s biggest lender, was told by the country’s financial watchdog it had underestimated risky assets as global regulators increase scrutiny of banks’ internal models.
Danske fell as much as 8 percent in Copenhagen trading after the Financial Supervisory Authority ordered the bank to adjust its models in a step that will force it to add about 100 billion kroner ($18 billion), or 13 percent, to risk-weighted assets “over time,” according to a statement late yesterday.