Denmark's small banks get lifeline

Saturday 01 October 2011 00:00 BST
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Denmark's central bank has thrown a £46bn lifeline to the country's small banks by agreeing to accept wider collateral against loans to ease the lenders' liquidity woes.

The move is designed to let banks make loans to small businesses and farmers amid a shortage of market funding for provincial Danish banks. Two small lenders failed earlier this year, further restricting the flow of funding from markets.

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