Danish banks flag pref senior possibilities in H2

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By Tyler Davies
20 Aug 2020

Danish banks say they could replace non-preferred senior debt with preferred senior bonds in the second half of 2020, after Denmark’s national supervisor relaxed minimum requirements for own funds and eligible liabilities (MREL).

The Danish Financial Services Authority (FSA) said in May that the country’s systemically important financial institutions (Sifis) would no longer have to meet all of their MREL targets with subordinated instruments. 

This allows banks to count some of their preferred senior debt towards their regulatory requirements. Previously, ...

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