Since Danske Bank is one of the few foreign banks active in the property and commercial lending business in Ireland this news might have knock-on effects on local business. Danske bought National Irish Bank and Northern Bank in 2005 but operated already for a while in the Republic of Ireland and Northern Ireland prior to the acquisition. Dankse holds a loan book credit exposure in Ireland at around EUR15bn and sits on a EUR6bn personal customer lending portfolio.
Dankse has one of the worst loan to deposit ratios in the EU, actually in the world at 220%
Lawmakers in Copenhagen have ruled out any state support for Denmark’s biggest lenders. Now here is a very smart reason for the decision by the administration: "It’s of principle importance to this government to protect taxpayers.” At least they seem to have learned from the Irish experience.