Report on the issue of an individual government guarantee to Amagerbanken A/S

26-10-2011

Report no. 1/2011

This report is about the course of events from the time when Amagerbanken A/S submitted its application for an individual government guarantee up to the transfer of the bank to Finansiel Stabilitet A/S (publicly owned company established to ensure financial stability in Denmark) for winding up early in February 2011.

The objective of Rigsrevisionen's examination is to clarify the course of events concerning the issue of the individual government guarantee to Amagerbanken and the transfer of the bank to Financial Stability, including also the roles played by Financial Stability and the Danish FSA in the process.

The report answers the following questions:

  • Did Amagerbanken comply with the statutory solvency requirement, and did the Danish FSA's inspection in this respect uncover the financial condition of the bank?
  • Was the issue of the individual government guarantee by the FS to Amagerbanken a financially sound decision?
  • Did a normalized credit policy provide the basis for the assessment of the risks facing the bank that was made by the new management of Amagerbanken in January 2011?

Rigsrevisionen initiated the examination in February 2011 at the request of the Public Accounts Committee

Read the report (PDF)