The European Commission has approved, under EU State aid rules, the prolongation of a Danish resolution scheme for small banks with total assets below €3 billion (US$3.6 billion) for 12 months, until January 28, 2022.
The scheme was originally approved in September 2010 and has been prolonged and amended several times, most recently in August 2019.
The measure will continue to be open to banks that are found to be in distress by the competent national authorities. The objective of the scheme is to facilitate the liquidation of small banks by the Danish resolution authorities, should the need arise.
The Commission found the prolongation of the scheme to be in line with EU State aid rules, in particular the 2013 Banking Communication and EU banking rules. More information will be available on the Commission’s competition website, in the public case register under the case number SA.58478 once any confidentiality issues have been resolved.
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