Nordea Bank AB, the Nordic region’s biggest lender, may consider Danish acquisitions as regulators clamp down on under-capitalized banks and consolidation accelerates six years after a property bubble burst.
Spar Nord Bank A/S, the regional lender acquiring Sparbank A/S, declined to its lowest price in six weeks in Copenhagen trading on estimates third-quarter net interest income fell after the central bank cut rates below zero.
Spar Nord Bank A/S, Denmark’s fourth-largest listed lender, received a 40 million-euro ($57 million) loan from the European Investment Bank to help offset the impact of higher funding costs on business loans.
Danish firms are entreating banks in the Nordic country to step up their efforts to find funds that can be channeled into corporate lending as a lack of credit threatens to choke business, kill jobs and trigger a recession.
Banks in Denmark looking for smaller lenders to purchase say too few are willing to be sold, driving prices higher and stalling the industry consolidation the government says is needed to emerge from the crisis.
Danish banks may not tap a new central bank lending program and instead pay more to fund themselves via the market as they try to persuade investors they can get by without resorting to support measures.