Denmarks financial regulator says it wont abide by a key principle in Europes Bank Recovery and Resolution Directive as the nation carves out its own vision for how to tackle insolvencies.
While the BRRD was formulated with a view to letting smaller banks fail if they get into trouble, Denmark says it wont allow that to happen.
Bankruptcy is messy, said Birgitte Holm, deputy director general at the Financial Supervisory Authority in Copenhagen. If you have a loan in a bank, for instance, and it suddenly goes bankrupt, it can take many, many years before its resolved, and we dont think thats a good idea.
Bail-In History
Denmarks aversion to bankruptcies stems in part from its history with bail-ins. It was the first country in Europe to adopt…
Read the full article at: http://www.bloomberg.com/news/articles/2016-06-19/eu-bank-resolution-plan-ignored-in-denmark-after-bail-in-trauma