European Central Bank Approvals Expected for Danish Compromise Treatment for Banks

Santander and BBVA are among banks set to receive European regulatory approval to apply the Danish Compromise, which allows them to hold less capital for risks at their insurance businesses. The treatment, which was created over a decade ago, allows banks to free up capital to invest or lend more. The ECB is expected to grant the approvals soon, marking an expansion of the Danish Compromise to more banks.