01/08/2011 (Agence Europe) - Danish regime for banks. On Monday 1 August, the European Commission authorised under EU state aid rules the amendment of the Danish winding-up scheme for credit institutions until 31 December 2011. Denmark has amended the Act commanding the Deposit Guarantee Fund, so as to allow the Fund to contribute to the bailout of a failing bank by providing compensation to an acquiring bank. This possibility will only be used, if it is less costly for the fund to provide the needed compensation than to deal with the distressed bank through the winding-up scheme, where the Fund has to compensate the depositors. The Commission found the amended scheme to be compatible with EU rules that allow aid to remedy a serious disturbance in the economy of a member state. In particular, the amended scheme will ensure that the viability of failing banks is restored, the aid amount is limited to the minimum necessary and appropriate burden-sharing is ensured, whilst avoiding undue distortions of competition. (F.G./transl.fl)