Another small Danish bank is in trouble. Sparekassen Østjylland (Savings Bank East Jutland) issued a press release this morning due to coverage in the local media confirming its dire situation. The bank admitted it has received a demand from Danish Financial Authority Finanstilsynet to increase its capital base as it became evident in Finanstilsynet inspection, that the bank needs to make large additional write-downs.
It has until 18.00 tomorrow to find a solution. The bank says that if it isn't successful in attracting a buyer by that time, it will hand itself over to Danish government's Financial Stabilitet A/S (Financial Stability company), which contributes to banking sector stability in the country in various means including winding up of distressed banks. One name that has been mentioned as potentially interested in acquiring assets from Sparekassen Østjylland is Spar Nord Bank (CPH: SPNO).
Sparekassen Østjylland's banking activities including online services have been temporarily suspended. It will open up on Monday either as Savings Bank or as a newly founded subsidiary of Financial Stabilitet A/S. Depositors are covered in accordance with the deposit guarantee scheme, insuring accounts up to 750 000 DKK in any event.
Sparkassen Østjylland is headquartered in Hammel, near Århus. It has 15 branches in East Jutland conrnered within Horsens, Silkeborg and Grenaa that serve some 40 000 customers. The bank employs 175 people.
No comments:
Post a Comment