Too-Big-to-Fail Danish Banks Seek Bailout Text in Sifi Law
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Denmark’s biggest banks want the state to clarify its readiness to bail them out.
The six lenders identified by a government committee as systemically important for the Danish economy say they need to be shielded from the country’s bail-in legislation for their too-big-to-fail designation to be meaningful. Danske Bank A/S, Denmark’s biggest lender, argues the additional capital costs they face should be matched by explicit guarantees of state support, just like in neighboring Sweden.