Denmark: Crisis Management, Bank Resolution, and Financial Sector Safety Nets: Technical Note

International Monetary Fund

No 2014/351, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper discusses findings and recommendations made in the Financial Sector Assessment Program Update for Denmark in the areas of crisis management, bank resolution, and financial-sector safety nets. The Danish resolution scheme has allowed the authorities to deal with mounting distress while minimizing costs for taxpayers. The scheme has enabled the orderly winding-up of the affected banks by providing for a transfer of all assets, and part of the liabilities, to the Financial Stability Company or third-party acquirers. The authorities are encouraged to further strengthen the resolution framework in line with the Bank Recovery and Resolution Directive and emerging international good practices.

Keywords: ISCR; CR; resolution authority; Resolution authorities; banking system; bridge bank; bank Package IV; financial crisis; Package III; short term; resolution regime; bank resolution technique; resolution action; banks insolvent; bank management; depositor preference; nonsubordinated liability; Bank resolution framework; Bank resolution; Crisis management; Crisis resolution; Global (search for similar items in EconPapers)
Pages: 43
Date: 2014-12-18
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