Contents

Recent Economic and Monetary Trends

The Danish Economy 2008-10

Financial Turmoil, Liquidity and Central Banks
Morten Kjærgaard, Market Operations, and Lars Risbjerg, Economics
The financial turmoil in connection with mounting losses on US subprime mort­gages has generated tensions in the money market in several countries and brought the central banks' liquidity management into focus. This article outlines the liquidity management of the Federal Reserve, the ECB and the Bank of England and their response to the turmoil. Liquidity management by Danmarks Nationalbank is also described.

Cibor
Morten Kjærgaard and Katrine Skjærbæk, Market Operations
Reference interest rates such as Cibor, Libor and Euribor have been in focus during the financial turmoil since August 2007. This article describes Cibor, including rules for its calculation, use and development before and during the turmoil.

The Financial Sector's Payments via Kronos
Irene Madsen, Payment Systems
Danmarks Nationalbank's payment system, Kronos, plays a key role in the Danish payments infrastructure. This article describes the substantial daily payment flows settled in Kronos, primarily comprising large, time-critical payments be­tween financial institutions and netted payments from connected settlement systems for retail payments, securities and foreign-exchange transactions.

Measures to Prevent Money Laundering and Terrorist Financing
Helene Vinten, Administration – Legal Affairs
There is increasing international focus on preventing money laundering and ter­rorist financing. This article describes the two concepts in more detail, outlining the Danish regulations in this area, as well as the international recommendations on which the Danish rules are based. At the core is the "know your customer" policy, which imposes an obligation on financial institutions to verify the customer's identity and a general duty of due diligence in respect of customer activities.

Working Palers Issued

Press Releases

Tables and Graphs Section

Vol. XLVII, No. 1