Regulatory Alerts2020-12-22
Order on Capital to Meet the Individual Solvency Add-on for Credit Institutions and Mortgage Credit Institutions
The Danish Financial Supervisory Authority, under the Ministry of Business Affairs, mandates that credit institutions and mortgage credit institutions must structure their capital for individual solvency add-ons with at least 56.25% Common Equity Tier 1 and 75% Tier 1 capital. The regulator retains the authority to require higher proportions of these core capital elements based on specific institutional circumstances. This regulation, effective December 28, 2020, replaces previous orders and allows for transitional treatment of hybrid Tier 1 or Additional Tier 1 capital issued before December 31, 2015, until December 31, 2021.
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