Subsidiaries of the Financial Stability Company
Pursuant to the Danish Act on Financial Stability (lov om finansiel stabilitet), the object of the Company is to ensure financial stability in Denmark, including winding-up of distressed banks which decide to be wound up under the Financial Stability Company.
In case a distressed bank does not comply with the Act’s capital adequacy requirement and the bank has been given a deadline by the Danish Financial Supervisory Authority to comply with this requirement, the bank may choose to be wound up under the Financial Stability Company. The Financial Stability Company will then set up a subsidiary company to take over all assets of the distressed bank and subsequently wind up the bank in a controlled and efficient manner. The takeover sum is calculated as the sum of the expected selling price of the assets as per the transfer date regardless of goodwill and other intangible assets and with a deduction of costs of disposal.