Financial sector regulation and supervision

Statements on inspections made by the Danish Financial Supervisory Authority

In November 2015, the Danish Financial Supervisory Authority conducted an inspection of Spar Nord Bank’s Risk Management Function, Compliance Function, internal audit and credit controls. The inspection focused especially on the Risk and Compliance Functions.

Read the statement on inspection

Statement on inspection of activities at Spar Nord Bank A/S (determination of reference rates)

In September 2015, the Danish Financial Supervisory Authority conducted a limited inspection at Spar Nord Bank A/S in its capacity of being an entity determining reference rates.

Read the statement on inspection

Statement on inspection of product development at Spar Nord Bank A/S

In September 2015, the Danish Financial Supervisory Authority conducted an inspection at Spar Nord Bank A/S.  The inspection was a theme-based function inspection based on the rules on product development and product management set forth in the Executive Order on Management and Control of Banks, etc. The inspection focused specially on Spar Nord’s portfolio management product, Star Invest Unlimited.

Report on cross-sectoral examination of credit and facility-granting standards

In autumn 2014, the Danish Financial Supervisory Authority conducted a cross-sectoral examination of credit and facility-granting standards in selected financial institutions – including Spar Nord Bank A/S.

Read the Danish Financial Supervisory Authority’s statement and comments from Spar Nord Bank A/S 

Statement on inspection of activities at Spar Nord Bank A/S

The Danish Financial Supervisory authority has conducted a limited inspection at Spar Nord Bank A/S in its capacity of being an entity determining CIBOR and CITA rates.

Fixed penalty notice

On 8 August 2014, Spar Nord Bank A/S accepted a fixed penalty notice of DKK 25,000 issued by the Danish Financial Supervisory Authority for having violated section 29 (1) of the Danish Act on Securities Trading, etc.

Fixed penalty notice

Spar Nord Bank A/S has received the Danish Financial Supervisory Authority’s decision and accepted a fixed penalty notice for a delay in reporting transactions in securities.

Statement on Independent Invest

In November 2013, the Danish Financial Supervisory Authority conducted an inspection at Spar Nord Bank A/S. The inspection focused on the Bank’s handling of the task as custodian for the investment Association Independent Invest, which is managed by Tiedemann Independent A/S.

Statement on an ordinary inspection at Spar Nord Bank A/S

In the period from March to May 2013, the Danish Financial Supervisory Authority conducted an inspection at Spar Nord Bank A/S. This inspection was an ordinary examination of all significant areas.

The Diamond Test Model

Spar Nord complies with all five parameters (limit values) that the Danish Financial Supervisory Authority lists in its Diamond Test Model.

The Danish Financial Supervisory Authority has introduced a test model, the so-called ‘Tilsynsdiamanten’ (“The Supervisory Authority Diamond Test Model”) that is used to test the financial strength and risk exposure of a financial institution based on five parameters, each having its unique limit value. Together the five parameters aim to provide a picture showing how Danish financial institutions are operating, whether they are run at a sound risk level, and whether a given financial institution is financially robust.

The five parameters (limit values) are:

  • Sum of large exposures (less than 125% of the capital base)*

  • Lending growth (less than 20% per year)

  • Real property exposure (less than 25% of total loans)
  • Stable funding, or funding ratio (lending not to exceed 1 time the volume of deposits)*
  • Excess liquidity coverage ratio (> 50%)

For Spar Nord, the test shows that the Bank is well below the recommended limit values.

Benchmarks Diamond Test Model recommendations Spar Nord 30.06.18

Spar Nord 30.09.18

Large exposures as % of capital base < 175% 79.1 pct. 74.4 pct.
Lending growth < 20% 5.8 pct. 3.9 pct.
Property lending < 25% 10.6 pct.

11.0 pct.

Stabil funding Max. 1 0.50 0.50
Excess liquidity coverage > 50% 187 pct. 158 pct.
*) As of 1 January 2018, the benchmark for large exposures was changed from below 125% to below 175% of capital base.

Ole Madsen

Senior Vice President, Communication & Business Development
My key task is to ensure that at all times Spar Nord makes fair, relevant and timely information available for the Bank’s stakeholders. Please feel free to call or write me if you have any questions or comments.
+ 45 25 27 05 80 Send mail