Financial Business Act.pdf

While this translation was carried out by a professional translation agency, the text
is to be regarded as an unofficial translation based on the latest official Consolidated
Act no. 286 of 4 April 2006. Only the Danish document has legal validity.
October 2006, GlobalDenmark Translations
151.-(1) A savings bank may not acquire or receive as collateral guarantee certificates in its
own capital.
(2) A cooperative savings bank may not acquire or receive as collateral cooperative share
certificates in its own capital.
152.-(1) A bank shall have appropriate liquidity, cf. subsection (2). Such liquidity shall
amount to no less than
1) 15 per cent of the debt exposures that, irrespective of possible payment conditions, are
the liability of the bank to pay on demand or at notice of no more than one month, and
2) 10 per cent of the total debt and guarantee exposures of the bank, less subordinated
debt that may be included in calculations of the capital base.
(2) The following may be included in calculations of liquidity:
1) cash in hand,
2) fully secured and liquid demand deposits with credit institutions and insurance
companies, and
3) equity investments of secure, easily realisable, securities and credit funds not used as
collateral for a loan.
(3) If the requirements of subsection (1) are not met, and if such situation is not remediated
no later than 8 days following the day the bank failed to meet the requirements, the bank shall
notify such situation to the Danish FSA immediately. The Danish FSA shall lay down a time
limit within which the requirements shall be met.
Special regulations for mortgage-credit institutions regarding the placement and liquidity of
funds
153.-(1) A mortgage-credit institution shall place funds corresponding to no less than 60 per
cent of the capital base requirement of the mortgage-credit institution, with the addition of
funds in series with a duty of repayment that are not included in the capital base, in the assets
listed below:
1) Deposits in central banks in Zone A.
2) Bonds and instruments of debt issued by or guaranteed by the governments or regional
authorities in Zone A.
3) Mortgage-credit bonds and other bonds issued by a credit institution in a country within
the European Union or a country with which the Community has entered into an
agreement for the financial area which carries equivalent collateral.
4) Listed bonds issued by international organisations with a membership of no less than
one Member State of the European Union.
(2) In special cases the Danish FSA may allow exemption from the limit mentioned in
subsection (1), if the mortgage-credit institution is in the same group as another mortgagecredit
institution.
EXCLUDING MINOR AMENDMENTS
154.-(1) Funds in series may not be paid in as hybrid core capital or subordinate loan capital
in other series or in the mortgage-credit institution in general.