Report from the Working Group on possible Danish Participation in the Banking Union
In July 2017, the previous government decided to establish a working group in order to prepare a decision on possible Danish participation in the Banking Union. The working group is now completing its work and is reporting to the government.
In the report, it is concluded that much speaks in favour of Danish participation in the Banking Union. Further, it is concluded that unclarified issues raised in the previous report on possible Danish participation in the Banking Union have been clarified or made more specific.
At the same time, the report notes that the Banking Union is still developing and that there is ongoing work on additional measures at EU-level which can change the regulatory framework for Danish credit institutions, whether or not Denmark participates in the Banking Union.
Simon Kollerup, Minister for Industry, Business and Financial Affairs, states:
“I am pleased to have received the working group's report, which contributes to a well founded consideration of the important question of possible Danish participation in the Banking Union. It is promising that the Banking Union’s supervision of the largest institutions is efficient and of high quality, and that the most significant uncertainties relating to Denmark’s mortgage-credit system are now clarified. In relation to the Danish mortgage credit system there is some unclarified supervisory issues which should be discussed further with the SSM in case Denmark decides to join the Banking Union.
It is the government’s position that there is a need for greater clarity concerning a number of important issues before we can determine our position on Danish participation: Sweden’s position is unclear; work on additional elements of the Banking Union is still ongoing, and the United Kingdom’s future relationship with the EU remains to be finalised. In addition, there is still uncertainty concerning how the new Basel recommendations will be implemented in the EU, which can have significant impact on the framework conditions for the Danish financial sector, regardless of whether we participate in the Banking Union or not.
The government will return to the issue when there is greater clarity on these issues, and when we have had a good public debate on possible Danish participation. It is the government’s position that if we end up recommending that Denmark should participate in the Banking Union, a referendum on the issue should be held.”
The work has been conducted by a working group under the Ministry of Industry, Business and Financial Affairs with participation of relevant ministries and authorities, as well as the Danish Central Bank. As part of this work, meetings have been held with supervisory and resolution authorities, as well as credit institutions in a number of countries participating in the Banking Union. In addition, meetings have been held with the Banking Union’s Single Supervisory Mechanism and Single Resolution Board, with the European Commission and with external experts and organisations.
An English summary of the report can be read here.
Report on Possible Danish Participation in the Banking Union: lessons learnt since 2015 can be read here (only in Danish).
Contact person: Ulrik Scheibye, Media Adviser, , tel.: +45 9133 7017