An article today in Denmark's Jyllands Posten (you may recognise the name from that little misunderstanding there was a few years ago concerning cartoons and freedom of speech), says that eight Danish banks are at risk when the official organisation responsible for 'this sort of thing', decides if they have enough capital to survive or not.
The eight are on a 'Black List' and earlier this year, when another bank went bust, the official people, while refusing to say who was on the list, said that the banks on the list had loaned out money to a total of 50 billion Danish Kroner. Jyllands Posten reckons the eight they're saying are on the list, have loaned out around 49.9 billion Kroner. So they're saying the list is accurate.
The eight ('otte', if you read/look at the article) banks are:
Andelskassen JAK Slagelse
Alm. Brand Bank
Vorbasse Hejnsvig Sparekasse
If you have money ('penge') with any of those, it might be an idea to consider not having money with any of them. Very quickly.
Being on this previously secret list, does mean that the authorities are keeping an eye on you. And that seems to mean forcing you to shape up or ship out. A good thing, you ask me. Inconvenient, if you ask the banks. I can't see their point.
Shaping up, will of course affect customers. The bank may have to slim down, pull in horns, reduce interest, increase interest and generally not provide the service of previous years. Oh dear, how sad, never mind.
I've said many a time, over the breakfast table, over the tea table; there are way too many banks here in Denmark. For a country of a shade over 5 million citizens, around 90 banks is a little too many. Any sensible person could see that, surely? There are some big ones in Denmark; Danske Bank (*spits*), Sydbank (our bank), Nordea (part of a Scandinavian-wide bank), etc. but there are still too many little local banks if you ask me. And while there are safe-guards in place, where the small investor, with a 'normal' amount of money saved, is protected up to a certain amount and they will get compensated if the bank should go bust, the risk of losing your money is still too high.
I have said many times, that there should be some consolidation in the banking sector. Larger banks should be encouraged to buy up the at least some of the smaller banks. Even 50 banks in a country the size of Denmark would be 40 too many in my opinion, but it would mean a sensible amount of consolidation compared to the state of play we have now.
The local towns- and village-people from where the smaller possibly bought-up banks are based, would raise hell. They'd hold meetings, coffee-mornings, go on protest coach-trips to Copenhagen, give their local tv stations a field-day, etc. But if that's the case, don't go bleating about it when your money goes up in smoke, your bank gets folded up into one of the larger ones anyway and your investments – and no doubt only a fraction of what you had saved up – disappear. And don't forget; whatever levels of compensation you do get, has to come from somewhere. From the government, the tax payer – that'll be me, then.