Regulatory Alerts2026-05-29
Inspection Report for Hvidbjerg Bank A/S
The Danish Financial Supervisory Authority issued an inspection report for Hvidbjerg Bank A/S identifying elevated credit, operational, and compliance risks driven by aggressive loan growth, concentrated corporate and agricultural exposures, and inadequate credit assessment and outsourcing oversight. The regulator ordered the bank to implement prudent valuations for cooperative apartment certificates, ensure reliable monitoring and correct risk classification for corporate and private customers, and establish formal guidelines and documentation for outsourced risk and compliance functions. Furthermore, the authority mandated an increase in management estimates for expected credit losses and raised the bank's Pillar II solvency requirement to 10.6 percent to adequately cover the identified deficiencies.