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Danish banks top the support list within the EU zone

Danish banks top the support list within the EU zone

Publicerat av Tony Harkén Wednesday, 22 February 2012.

 

The EU has presented new figures showing that Danish banks topped the list for state aid which is a form of aid that the EU does not really allow.

Since the beginning of the financial crisis in 2008, Denmark has had 18 different exceptions to circumvent the EU rules on state bank support. However, Denmark is not the only country. Germany and Ireland have circumvented the EU rules as well.

Overall, the Danish government and its taxpayers have supported the banking sector with 4.500 billion DKK since 2008 which is only surpassed by Ireland when comparing per capita of all 27 EU countries.

The taxpayers' warranties have been intended to support under-capitalized banks to absorb losses for the ten Danish banks that have gone bankrupt since 2008.

Denmark was not first country introducing bank support, but when other countries began to construct the state bank guarantees, the country was forced follow so that the nation's banks would remain competitive. The Danish banking sector is small by international standards, which is one reason that it is exposed to more pressure and therefore needs a greater security.

Publicerat av

Tony Harkén

danmark

Time in Danmark

DK - Time