The Danish government launches review on Danish participation in EU Banking Union

The Danish government has decided to launch a review which should pave the way for a final decision on Danish participation in the Banking Union in the autumn of 2019.
Pressrelease
Tuesday, July 4, 2017

The European Banking Union was launched in November 2014. In the spring of 2015 a report on Denmark’s possible participation in the Banking Union was submitted to the Danish government. Based on the report, the government in office and a majority of the Danish Parliament concluded at the time that, overall, it would be in the interest of Denmark to participate in the Banking Union. It was furthermore concluded that a final decision on Danish participation would be postponed until a number of areas concerning the functioning of the Banking Union were clarified.

Since then several important events have occurred, including Brexit and increased interest for placing financial activities in Denmark, which make it relevant to launch a review which should pave the way for a final decision on Danish participation in the Banking Union.

The Minister of Industry, Business and Financial Affairs Brian Mikkelsen says:

“The government finds it is the right time to launch a thorough review in order to make a final decision on Danish participation in the Banking Union in the autumn 2019.

The Banking Union has been in function for a number of years and there is a basis for assessing the experiences and the way supervision of banks and mortgage credit institutions will be conducted. moreover, it is relevant to assess experiences with handling financial stability issues

The United Kingdom has decided to leave the EU. This decision will change the dynamics of the EU, not least in the financial services area. This will impact the possibilities for serving Danish interests in relation to banks and mortgage credit institutions.

At the same time, focus on Denmark and Copenhagen as a financial center is increasing.

Clearly, it serves Danish interests if we can attract more investments and jobs to Denmark. This is also an important aspect behind the launch of the review leading up to a final decision on Danish participation in the autumn 2019.”                       

The work will be conducted by the committee “Koordinationsgruppen for Finansiel Stabilitet” which was also tasked to draw up the 2015-report. The work shall, among other things, include experiences from comparable countries participating in the Banking Union, consequences of Brexit, unresolved issues relation to supervision of Danish mortgage credit institutions in the Banking Union  as well as the Banking Union’s contribution to financial and economic stability, also in relation to Denmark. The committee will include input from external experts and relevant organizations and report to the Danish government in the autumn 2019 at the latest.

Contact: Sara Ringgaard Price: 91 39 94 07/srp@em.dk