Case study Andelskassen

The global financial crisis infected the financial industry in Denmark. The risk of further contagion concerned the government and in response five bank packages were adopted to encourage consolidation and restructuring. The resolution took place via a bridge bank and bail-in that included uninsured depositors. The bank packages included state guarantees, capital injections, liquidity support and incentives to promote small business funding. When the resolution decree was issued on the 5th of October 2015, the central bank immediately announced its control of Andelskassen. A bridge bank was established, and an interim valuation was prepared to test the NCWOL principle. No litigation procedures were initiated by creditors of Andelskassen who saw their claims being written down, making the Andelskassen resolution a model for other member states.