The Danish Financial Supervisory Authority has published a new executive order and guidance on recovery plans for credit institutions, mortgage credit institutions, a ship finance institute and investment firms, introducing a more proportionate regime for smaller and medium-sized banks. From 1 July 2026, more banks will be allowed to use simplified recovery plan obligations, and those eligible institutions will submit recovery plans every three years instead of annually. The changes are designed to reduce administrative burdens as part of the authority's national proportionality project. The threshold allowing the smallest banks to submit a capital raising plan instead of a full recovery plan will rise from DKK 1 billion to DKK 2 billion in total assets. For banks that qualify for simplified obligations, the next recovery plan will therefore generally not need to be submitted until 2028. The Danish Financial Supervisory Authority will designate each year which banks may use the simplified obligations. The institutions covered will be identified as soon as possible after the rules take effect on 1 July 2026.
Danish Finanstilsynet2026-06-29
Danish Financial Supervisory Authority eases recovery plan requirements for smaller banks with triennial filings from July 2026
The Danish Financial Supervisory Authority has issued new recovery plan rules and guidance that expand simplified obligations for smaller and medium-sized banks from 1 July 2026. Eligible banks will file recovery plans every three years instead of annually, and the threshold for submitting a capital raising plan instead of a full recovery plan will rise from DKK 1 billion to DKK 2 billion in total assets. The authority will identify the eligible banks annually.