The Financial Stability Company was established in October 2008 as part of an agreement between the Danish State and the Danish financial sector (the Private Contingency Association) on a scheme to secure financial stability in Denmark. This agreement was reached in response to the international crisis and the impact it was having on the financial sector.
The Financial Stability Company is state-owned through the Danish Ministry of Economic and Business Affairs.

The Company’s activities are governed by the Act on Financial Stability and the Financial Business Act and executive orders issued in pursuance thereof. In addition, the Company is subject to special provisions regarding state-owned companies.

The object of the Company is to ensure that the claims of unsecured creditors of the banks and branches which have entered into an agreement with the Private Contingency Association are covered, if their bank becomes distressed. In addition, the Financial Stability Company is responsible for ensuring the timely payment of all due claims of unsecured creditors and depositors.

In addition, the Company’s object is to enter into agreements for the provision of individual government guarantees for existing and new unsubordinated, unsecured debt and for the provision of supplementary collateral (junior covered bonds) with a maturity of up to three years by institutions issuing covered bonds.

More information, news service and press releases from The Financial Stability Company here.