Danish Banks Consolidate

COPENHAGEN, Sept 15 (Reuters) – The Danish banking sector, which is brimming with more than 100 small local lenders, saw two deals on Monday, prompted by last month’s collapse of Roskilde and by the expansionary plans of a big Swedish bank.
Sweden’s Handelsbanken said it had bid 810 million Danish crowns ($152 million) for Lokalbanken Nordsjaelland, a bank headquartered in wealthiest part of Denmark.
Earlier in the day, Denmark’s largest mortgage lender, Nykredit, bid 105 crowns per share, or 1.8 billion crowns, for Forstaedernes, another local lender.
In August, Denmark’s central bank, with help from the financial sector, stepped in to save Roskilde , brought low by bad loans to the slumping real estate sector.
Nykredit Chief Executive Peter Engberg Jensen said the mortgage lender had bid for the bank because of Forstaedernes’ focus on loans to mid-sized companies and private customers.
Independent banking consultant Bjarne Jensen said the rationale behind the day’s two deals was dissimilar.
“It is a good price for a good bank,” Chief Executive Par Boman told Reuters.
While the Danish mortgage market is dominated by a few larger players, retail banking and corporate lending is more fragmented. There are around 130 small banks, which typically operate in specific regions.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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