Copenhagen — Danske Bank is the target of a fresh probe involving the police after it emerged that the lender may have misled Denmark’s financial watchdog about its handling of debt-collection errors.

The Financial Supervisory Authority (FSA) has given Denmark’s biggest bank until September 10 to answer a series of questions relating to the case, including exactly when Danske first discovered there was something wrong. Denmark’s economic crime squad, known locally as SOIK, said on Wednesday it is in talks with the FSA regarding the case...

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