COPENHAGEN, Feb 6 (Reuters) - The head of Denmark's central bank said on Sunday that Danish banks generally have adequate liquidity and capital and the failure of small bank Amagerbanken did not change that assessment.
Amagerbanken announced on Sunday that it no longer met solvency requirements and would be taken over by state administrators.
'The protracted vulnerable situation of Amagerbanken and its termination as a independent bank does not change the Nationalbank's general assessment of the strength of the financial system,' central bank Governor Nils Bernstein said.
'The Danish financial sector as a whole is assessed to have sufficient capital and liquidity to meet the outlook for the Danish economy,' Bernstein said in a statement.
He added that Denmark's contingency mechanism for taking care of a bank in distress offered the least possible disruption for ordinary banking customers.
(Reporting by John Acher) Keywords: AMAGERBANKEN CBANK/ (john.acher@reuters.com; +45 2630 9650; Reuters Messaging: john.acher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Amagerbanken announced on Sunday that it no longer met solvency requirements and would be taken over by state administrators.
'The protracted vulnerable situation of Amagerbanken and its termination as a independent bank does not change the Nationalbank's general assessment of the strength of the financial system,' central bank Governor Nils Bernstein said.
'The Danish financial sector as a whole is assessed to have sufficient capital and liquidity to meet the outlook for the Danish economy,' Bernstein said in a statement.
He added that Denmark's contingency mechanism for taking care of a bank in distress offered the least possible disruption for ordinary banking customers.
(Reporting by John Acher) Keywords: AMAGERBANKEN CBANK/ (john.acher@reuters.com; +45 2630 9650; Reuters Messaging: john.acher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.