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Banks on Verge of Collapse in Denmark Win Time in FSA Review

Danish banks in breach of the nation’s solvency rules will get more time to raise capital and avert failure as the regulator eases its resolution practices.

The Financial Supervisory Authority will give two banks currently in breach of individual solvency requirements the time they need to rebuild their capital buffers, said Anders Balling, head of banking at the regulator in Copenhagen. At the height of Denmark’s banking crisis two years ago, the FSA gave lenders as little as 48 hours to find investors before they were shut down.