Deals
Nordea’s Bid to End Subsidiary Structure Has Regulators Worried
- Denmark’s FSA director says branch bid may trigger EU review
- EU alert to risk of banks seeking regulatory arbitrage
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As Scandinavia’s biggest bank tries to redefine its subsidiaries as branches, regulators across Europe are starting to wonder whether the move is in keeping with the spirit of the region’s rules.
Nordea Bank AB in May won Swedish approval to move ahead with its plan to transform subsidiaries in Denmark, Norway and Finland into branches. The step will be executed through cross-border mergers, which Nordea intends to complete in early 2017. The maneuver means the bank will make branches of units that, in some cases, have tended to generate as much income for the bank as the Swedish operations.