In Denmark, the most important initiative on the drawing board is the government’s bill on a winding-up solution for banks, which is to replace the general government guarantee. Experience from the financial crisis and the management of ailing banks has shown that it is necessary to establish a permanent scheme to provide for controlled winding up of a bank’s activities.
Danmarks Nationalbank has previously emphasised that the key issue is not the survival of the individual bank, but smooth continuation of its healthy activities. The bill will establish a winding-up scheme. The Financial Stability Company will be able to take over ailing banks. The guaranteed cover for unsecured creditors does not exceed the statutory deposit guarantee of kr. 750,000.