Bad loans wipe out Denmark’s Amagerbanken

The Danish taxpayer is going to have to stump nearly two billion euros after the collapse of another bank there.

Amagerbanken became the country’s 10th financial institution to have to be taken over by the state in the wake of the global financial crisis.

Denmark’s eighth biggest bank in terms of lending, says its equity was wiped out because loans were not repaid, mostly by failed property investors.

Denmark’s biggest bank Danske, as well as the Nordic region’s biggest bank Nordea and four competitors said they had little or no exposure to Amagerbanken.

Denmark has the most fragmented banking industry of any of the Nordic countries, with more than 100 financial institutions.

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