The Danish Compromise is the key reason that has boosted the trend of acquisitions of insurance companies and not just by banks, according to an analysis by Beta Securities. This institution allows for less capital impairment for banks, which is a major incentive for similar moves.

In any case, the issue is of particular interest to Greek banks that have proceeded to acquire similar assets.

Oliver Wyman notes that announced M&A deals in the banking sector reached a record $27 billion for the first months of 2025, almost double the volume for the same period in 2024

The Danish Settlement acts as a capital “discount” that allows banks to expand into the collateral (and asset management) sector without the heavy CET1 penalty associated with such transactions.