5: 28 AM EDT, 09 October 2011 by Christian wienberg
(To add Updates, sixth subparagraph, calls placed in historical impairments solvency in seventh, eighth.
October 9 (Bloomberg)--the Danish Government the liquidation unit said it probably will take on regional lender Bank Max a/s, which would be the third failure this year under the most severe resolution laws of the European Union.The financial stability company will probably take over and liquidate the lender Naestved-based, said the e-mail today in a statement sent late yesterday. In a separate statement said Bank Max that the Danish financial supervisory authority had been told to increase after an inspection of impairment losses on bad loans and boost solvency before the expiry of a period of 6 hours today.Denmark issued a law in October last year, making it the first EU Member States to force senior bank creditors must lose within the framework of a resolution. Since then, two regional lenders have collapsed and international investors have withheld funding for most of the approximately 120 banks of the nation. Max Bank said yesterday that the OMX Copenhagen stock exchange to suspend trading of its shares had agreed and bonds. "If the bank cannot meet the FSA to sufficient capital or another solution to the situation of the time limit laid down, the bank will be settled according to the laws of the resolution, "said Max Bank in its statement.TakeoversTo looking for acquisitions and prevent more bail-ins, Danish lawmakers last month passed the country's fourth largest bank rescue package since 2008. The legislation extends the duration of the State guaranteed debt and let the Government of ailing banks in the case of a merger to take on bad loans. Financial stability thus Bank Max under the company that the fourth package, can be solved if another bank steps in take over.Not say by how much that financial stability requires the FSA Bank Max impairments or what the new solvency ratio requirement was to raise. Henrik Bjerre-Nielsen, chief executive officer of financial stability, not looking for details. Max Bank CEO Henrik Lund has not responded to a message left on his voice mail.The bank wrote 79.2 million kroons (14.3 million dollars) of bad loans in the first six months of the year in addition to 218 million kroons combined for the years 2009 and 2010. In its annual report published February 28, said Max Bank 34% of its loans were related to the construction and real estate industries, one of the sectors which the FSA has said Denmark is the most risky.The bank had a solvency ratio of 13.8% at the end of June, more than his own calculated requirement of 11.3 percent, said the August SlumpMax. Share Bank bonds worth 3 billion kroner has, according to Bloomberg data. The fair value of the bank was 59.5 million crowns as of the October 7 closing price after the stock lost 72 percent this year.The bank had assets of 9.39 billion kroner at the end of June, according to its first half earnings report. It was the third-most risky of 99 Danish banks invest ApS in a survey of sorted researcher Niro June.--Publisher: Brogger Tasneem.
Contact the reporter on this story: Christian wienberg in Copenhagen at cwienberg@bloomberg.net
Contact the editor responsible for this story: Tasneem Brogger on tbrogger@bloomberg.net
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