Eik Banki
Encyclopedia
Eik Banki Føroya P/F is a financial services
group in the Faroe Islands
, which was previously one of the two major privately-owned banking firms based in the country. Established in 1832, the group, which also operated in mainland Denmark
, encompassed retail
, corporate
and investment banking
activities as well as real estate
brokerage. The company was nationalised
by Denmark in October 2010 after becoming insolvent, with its Danish retail banking
operations being sold later in the year to the regional bank Sparekassen Lolland.
. In 1992 it was transferred into a guarantor savings bank, and in 2002, it was converted to a public limited company
. On 11 July 2007, it was listed on the Icelandic
and Danish
stock exchanges as Eik Banki P/F.
In Denmark, Eik Banki founded a subsidiary
bank, Eik Bank Danmark A/S. In 2007, Eik Bank Danmark acquired the Swedish Skandiabanken branch in Denmark. Skandiabanken is the leading Danish internet bank in Denmark, with around 120,000 customers. Skandiabanken was merged into Eik Bank Danmark in December 2007. In the same month Eik Bank acquired the Faroese operations of Kaupthing Bank
.
The company and its Danish subsidiary were taken over by the Danish banking regulator in October 2010 after failing to meet solvency
requirements set by the Financial Supervisory Authority
. Trading in the company's shares and bonds was suspended on the news, and Eik Banki's listing on the Nasdaq OMX Iceland exchange was subsequently cancelled.
The retail banking operations of the company in mainland Denmark (Eik Bank Danmark A/S) were sold by the state to the regional bank Sparekassen Lolland for DKK 365 million on 17 December 2010.
and commercial bank
ing network in the Faroe Islands and ownership of the leading Faroese real estate
broker
age company, Inni P/F.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
group in the Faroe Islands
Faroe Islands
The Faroe Islands are an island group situated between the Norwegian Sea and the North Atlantic Ocean, approximately halfway between Scotland and Iceland. The Faroe Islands are a self-governing territory within the Kingdom of Denmark, along with Denmark proper and Greenland...
, which was previously one of the two major privately-owned banking firms based in the country. Established in 1832, the group, which also operated in mainland Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, encompassed retail
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
, corporate
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
and investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
activities as well as real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
brokerage. The company was nationalised
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
by Denmark in October 2010 after becoming insolvent, with its Danish retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
operations being sold later in the year to the regional bank Sparekassen Lolland.
History
Eik was established in 1832 as a savings bankSavings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
. In 1992 it was transferred into a guarantor savings bank, and in 2002, it was converted to a public limited company
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
. On 11 July 2007, it was listed on the Icelandic
Iceland Stock Exchange
NASDAQ OMX Iceland or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter...
and Danish
Copenhagen Stock Exchange
The Copenhagen Stock Exchange or CSE is an international marketplace for Danish securities, including shares, bonds, treasury bills and notes, and financial futures and options...
stock exchanges as Eik Banki P/F.
In Denmark, Eik Banki founded a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
bank, Eik Bank Danmark A/S. In 2007, Eik Bank Danmark acquired the Swedish Skandiabanken branch in Denmark. Skandiabanken is the leading Danish internet bank in Denmark, with around 120,000 customers. Skandiabanken was merged into Eik Bank Danmark in December 2007. In the same month Eik Bank acquired the Faroese operations of Kaupthing Bank
Kaupthing Bank
Kaupthing Bank was an international Icelandic bank, headquartered in Reykjavík, Iceland. It was formed by the merger of Kaupthing and Búnaðarbanki Íslands in 2003 and was the largest bank in Iceland....
.
The company and its Danish subsidiary were taken over by the Danish banking regulator in October 2010 after failing to meet solvency
Solvency
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term...
requirements set by the Financial Supervisory Authority
Financial Supervisory Authority (Denmark)
The Danish Financial Supervisory Authority is the financial regulatory authority of the Danish government responsible for the regulation of financial markets in Denmark....
. Trading in the company's shares and bonds was suspended on the news, and Eik Banki's listing on the Nasdaq OMX Iceland exchange was subsequently cancelled.
The retail banking operations of the company in mainland Denmark (Eik Bank Danmark A/S) were sold by the state to the regional bank Sparekassen Lolland for DKK 365 million on 17 December 2010.
Operations
After the sale of Eik Banki's Danish retail banking operations in December 2010, the company's principal remaining businesses are a retailRetail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
and commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
ing network in the Faroe Islands and ownership of the leading Faroese real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
age company, Inni P/F.