The Nykredit Group approved as advanced IRB institution (Basel II)

Nykredit has submitted an application to the Danish Financial Supervisory
Authority 
(FSA) for permission to apply the advanced IRB (Internal Ratings Based) approach
for the determination of the capital requirement for credit risk. The FSA has
today 
authorised Nykredit to apply the advanced approach for the determination of its
capital requirement from 1 January 2008. In terms of credit risk, the approval
covers:
• Advanced IRB approach to:
• Mortgage lending by Nykredit Realkredit A/S and Totalkredit A/S
• Retail lending by Nykredit Bank A/S
• Equity exposures
• Foundation IRB approach to:
• Commercial lending by Nykredit Bank A/S
• Standardised approach to:
• Central government and credit institution exposures
• Individual minor portfolios