Crisis management of credit institutions – what is new?

Analysis - March 2021 - No. 4

Authors Rommer, Anne Dyrberg; Larsen, Christine Sif
Subject Financial stability; Financial regulation
Type Analysis
Year 2021
Published 4 March 2021
Abstract icon Today, we have crisis management rules in Denmark and the rest of the EU which ensure crisis management of failing credit institutions without the use of government funds. A recent revision of the rules makes it more likely that senior unsecured creditors will have to contribute to the crisis management of a failing credit institution. It is important that senior unsecured creditors are aware of the risk and take it into account in their risk management.