Vestjysk Bank A/S on Dec. 30 reiterated that it will not be able to fully meet the Danish Financial Supervisory Authority's capital requirements by Jan. 1, 2017.
Accordingly, certain restrictions pertaining to dividend and bonus payments will continue to apply to Vestjysk Bank. In addition, a capital conservation plan will have to be submitted to the Danish FSA, the bank added.
The bank is required to include 312 million Danish kroner of Additional Tier 1 capital from the state of Denmark in its individual solvency need as of Jan. 1, 2017, in addition to a 0.625% higher general capital conservation buffer totaling 100 million Danish kroner.
The AT1 amount will be excluded from the bank's total capital as of Jan. 1, 2018.
As of Dec. 29, US$1 was equivalent to 7.09 Danish kroner.