Banking Law News
May 27, 2020, 1:30 PM
Several of Denmark’s biggest banks will see their so-called bail-in buffers come under intense pressure as the Covid-19 crisis triggers an historic economic slump.
Stress tests published by the Danish central bank on Wednesday show that lenders may need to issue as much as 160 billion kroner ($24 billion) until 2022 to maintain a layer of capital known as MREL, which is designed to absorb losses and ensure taxpayers aren’t called on to bail out the industry.
“Over the coming years, several systemic banks will need to issue new MREL-eligible debt instruments to continue to meet the requirements,” the bank…