Danmarks Nationalbank and the financial sector in Denmark have entered into an agreement with the board of directors of Roskilde Bank, via a new bank, on buying all assets and takeover of all debt and other liabilities, except from hybrid core capital and subordinated loan capital in Roskilde Bank from Roskilde Bank.
The takeover includes all employees of Roskilde Bank, all depositors and other unsecured creditors.
The financial sector is represented by a private association set up by the Danish Bankers’ Association (Det Private Beredskab til Afvikling af Nodlidende Banker, Sparekasser og Andelskasser) who has received funds from its members and from Nykredit.
The takeover of Roskilde Bank follows the fact that no offers – domestic or foreign were received after a thorough sales process on either all or parts of Roskilde Bank, said Danmarks Nationalbank. Furthermore, the auditing of Roskilde Bank’s interim report has revealed additional losses in the bank to the extent that Roskilde Bank does not meet solvency requirements, added Danmarks Nationalbank.
Danmarks Nationalbank sees the Roskilde Bank situation as very serious. It is expected that the takeover of Roskilde Bank will contribute to limiting the negative effect on the Danish financial system.
The operations of Roskilde Bank will continue in a new bank under the same name. Danmarks Nationalbank and Det Private Beredskab will contribute approximately DKK4.5 billion in capital base. The purpose of the new bank is to continue banking business in order to ensure the best possible proceeds from the discontinuation of the company that is being taken over from Roskilde Bank.