Four large Danish banks passed the European Central Bank’s (ECB) stress test while 25 other banks across Europe failed.
Nearly one in five of the of the 130 banks examined by the ECB failed the examination, but Denmark’s four largest banks – Danske Bank, Nykredit, Jyske Bank and Sydbank – all received passing marks by the Danish Financial Services Authority (Finanstilsynet), which carried out a stress test in conjunction with the ECB.
The Danish banks were forced to write down large sums in capital following the exam, led by a 700 million kroner ($119 million) write-down by Danske Bank, the nation’s largest.
Jyske Bank was told to write down 456 million kroner, Nykredit 501 million kroner and Sydbank 75 million kroner.
A total of 25 eurozone banks, including nine in Italy, failed the ECB’s stress tests. The examination of the banks was carried out by the ECB in advance of the Frankfurt-based institution taking on a new watchdog role on November 4th. The assessment was meant to evaluate whether Europe’s largest banks would be able to survive another financial crisis.