In 2024, the work to develop resolution plans for Danish, Faroese and Greenland banks, mortgage credit institutions and investment companies continued. The initiative forms part of a common European effort to strengthen confidence in the management of failing financial institutions and to ensure that losses incurred in connection with the crisis management of such institutions are borne by the owners and creditors.

The resolution plans are intended to define strategies for the continuation of critical functions and to ensure that the strategy may be executed in practice. Finansiel Stabilitet participates actively in international resolution colleges for cross-border systemically important financial institutions (SIFIs). For SIFIs domiciled in Denmark, the Danish resolution authority acts as group resolution authority and manager of the affiliated resolution colleges.

Another important focus area is to continue testing the resolution contingency set-up of institutions. Finansiel Stabilitet assesses whether the institutions have the procedures and data access necessary to quickly deliver critical information in a crisis situation. This work is carried out in close collaboration with the Danish FSA.

In 2015, Finansiel Stabilitet assumed control of Andelskassen J.A.K. Slagelse, as the institution was failing and needed crisis management. As part of the takeover, all shareholders and a relevant part of the creditors were written down, as a valuation carried out by an independent valuation expert had shown that there were insufficient funds to cover these liabilities. In 2017, the bank was converted into a financing company with the name of FS Finans V A/S, from which the resolution of remaining loans was to take place.

At 31 December 2024, FS Finans V A/S had loans and guarantees representing a total carrying amount of DKK 9 million and total assets of DKK 32 million.

At the end of 2024, the Resolution Fund had a total profit of DKK 2 million in relation to the resolution of Andelskassen J.A.K. Slagelse.

In 2018, Finansiel Stabilitet assumed control of Københavns Andelskasse, as the institution was failing and needed crisis management. As part of the takeover, shareholders and a part of the creditors were written down, as a valuation carried out by an independent valuation expert had shown that there were insufficient funds to cover all creditors. In 2019, the bank was converted into a financing company with the name of FS Finans VI A/S, from which the winding up of remaining loans will take place.

In 2019, Finansiel Stabilitet filed two liability lawsuits against the former management of Københavns Andelskasse before the District Court of Copenhagen.

One of these lawsuits concerned Københavns Andelskasse’s acquisition of the company OTC-listen. In this case, the District Court of Copenhagen on 25 May 2022 delivered a decision, by which the claims against the management members were dismissed. FS Finans VI A/S was ordered to pay legal costs in a total amount of DKK 5.7 million. FS Finans VI A/S appealed the decision to the High Court of Eastern Denmark. In a decision of 24 October 2024, the High Court of Eastern Denmark affirmed the decision of the District Court and ordered FS Finans VI A/S to pay legal costs to the High Court in a total amount of DKK 1.9 million.

In the other liability lawsuit, which concerned management’s liability in connection with losses on two loan exposures, the District Court of Copenhagen on 16 August 2022 delivered a decision, by which two management members were ordered to pay damages of DKK 2.5 million in respect of one of the loan exposures. FS Finans VI A/S was ordered to pay legal costs of DKK 0.7 million to the management members against whom the claim was dismissed. The two management members found liable were ordered to pay legal costs of approximately DKK 0.4 million to FS Finans VI A/S. The two management members found liable appealed the decision to the High Court of Eastern Denmark. Before the High Court, FS Finans VI A/S claimed affirmation of the District Court’s decision and that one of the management members also be held liable in damages for the other loan exposure. In December 2024, the case was settled by the two management members found liable paying the amount of DKK 2.5 million imposed by the District Court as well as the legal costs of approximately DKK 0.4 million.

On 9 September 2019, the National Special Crime Unit (National enhed for Særlig Kriminalitet - NSK) charged FS Finans VI A/S with violation of the Danish AML legislation prior to Finansiel Stabilitet’s assumption of control over Københavns Andelskasse. NSK subsequently made a series of time-consuming examinations of witnesses and other persons charged, which led to an indictment. As Finansiel Stabilitet was of the opinion that money laundering had taken place in Københavns Andelskasse prior to the takeover, and as Finansiel Stabilitet agreed with the prosecution service’s assessment that a punishable violation of the Danish AML legislation had taken place, a judicial fine of DKK 794 million was imposed on 20 January 2025. FS Finans VI A/S is legally barred from paying the fine, as the fine is comprised by the impairment loss recognised in connection with the takeover of Københavns Andelskasse, and the fine will therefore not be paid.

At 31 December 2024, FS Finans VI A/S had net loans and guarantees representing a total carrying amount of DKK 8 million and total assets of DKK 38 million.

At the end of 2023, the Resolution Fund had a total deficit of DKK 4 million in relation to the resolution of Københavns Andelskasse.