The European Commission has welcomed the reorganisation of the ING bank, and approved the state bailout ING received last year. It has also agreed to the bank’s deal with the government to cover its exposure to risky US subprime mortgages.

Under pressure from Brussels, ING announced last month that it would split up its banking and insurance divisions. European Competition Commissioner Neelie Kroes said she was “very pleased with the proposed restructuring plan,” concluding that the measures are sufficient to counterbalance the 15 billion euros of state aid. ING shares made a modest 0.9 percent gain on the Amsterdam stock market in response to the news.

ING is not the only European bank to have bowed to pressure from Neelie Kroes to compensate for market distortion caused by state aid. On Wednesday the British bank Lloyds and the Belgian KBC also had there restructuring plans approved. Both have been forced to slim down.
 

European Competition Commissioner Neelie Kroes - ANP