Subsidiaries of the Financial Stability Company
The object of the Financial Stability Company is to secure and cover claims from depositors and other unsecured creditors of the banks and bank branches that are members of the Private Contingency Association. Accordingly, the full amount of claims by all banking customers and other unsecured creditors against Danish banks and the Danish branches of foreign banks, as far as depositors are concerned, are covered until 30 September 2010.
If a bank fails to meet the statutory solvency requirement, and a sustainable private-sector solution cannot be found, the Financial Stability Company will either inject capital into a newly-established subsidiary taking over the bank and winding it up in a controlled process, inject subordinated capital into a newly-established bank to secure a controlling influence, transfer the bank to a buyer designated by the Financial Stability Company, or pay a cash lump sum to take over an ailing bank.