Statement by Governor Nils Bernstein on Fjordbank Mors

The Financial Stability Company has taken over the assets and part of the liabilities of Fjordbank Mors. This is the second time that the rules under Bank Rescue Package 3 are applied. Bank Rescue Package 3 ensures that the customers' everyday banking business, such as Dankort payments, can still be carried out even though the bank is being wound up.

"The circumstances of Fjordbank Mors are unfortunate, but the bank will be wound up in a fair and orderly manner.

Danish banks are generally sound and well-consolidated, and strenuous efforts have been – and are being – made to strengthen earnings and the capital base as well as to reduce bank's vulnerability.

Many of the problems we have seen have been attributable to exposures outside the bank's usual business area and geographical coverage. We are still in an adjustment process. It is important that banks with problems seek to address them via balance-sheet adjustments or through mergers. Each bank's board of directors and management are responsible for assessing the bank's situation and contacting the authorities at an early stage, so that a solution can be found before bankruptcy," says Governor Nils Bernstein.