Loss of Danske Bank customers offers stark lesson on the cost of Scndal
Years after Danske Bank A/S’s part at the centre of one of the largest European money-laundering scandals was exposed, the cost of failurea of governance still resounds across the financial landscape.
Once among the Nordic region’s most reputable banks, Danske is still to fully re-instate itself to prominance following the scandal that’s made it the centre of criminal investigations in the U.S. and Europe.
Corporates appear to have seen past the scandal, but when it comes to retail clients, Danske’s CEO is noted as saying the bank is still suffering “reputational issues.”
“In the Danish retail business, we do continue to see customer outflows and falling market shares,” CEO Carsten Egeriis said in an interview. “That is clearly one of my, and our, top priority points, to turn that around.” The bank doesn’t publish a quarterly breakdown of customer flows.
Since admitting in 2018 that it did not adequately screen around €200 billion ($235 billion) in non-resident cash that moved through it’s Estonian branch, Danske has been the worst-performing major bank stock after tanking in the Nordic market and worldwide.