Organization and Presentation of Accounts

No major adjustments have been made to the Nationalbank's organization since the re-organization in the autumn of 1996. Certain areas were expanded in 1997, whereas others were subject to reductions, so that the number of employees has been reduced by seven to 579 full-time employees.

The Nationalbank's accounts for 1997 show a profit of kr. 5.6 billion. After allocations to the Value Adjustment Reserve and to the General Reserves the remainder of kr. 3.2 billion is payable to the central government.

Tasks

The extensive adjustments to the Nationalbank's internal organization in  the autumn of 1996 were concluded with the establishment of the Payment Systems Department as of February 1, 1997, cf. the Organization Chart. No further adjustments to the organization have taken place, although considerable changes are being made to the preparation of the balance-of-payments statistics and the handling of the supply of banknotes and coins. Furthermore, the information service has been ex- panded.

The adjustments concerning the cash supply are described in the section on banknotes and coins.

The restructuring of the collection of statistics for compilation of the balance of payments and the foreign debt has been under way for several years. So far the banks have reported payments between Denmark and abroad to the Nationalbank using paper-based forms. The data was then entered manually at the Nationalbank. During 1998 this reporting system will be converted to an electronic reporting system, thus eliminating the manual entry of the statistics.

The international requirements of financial statistics and of the publication of statistics have increased, so that more work is now required.

As from January 1, 1998 the Nationalbank expanded and amended its publication of statistics with the "Nyt" ("News") publication series whereby statistical data is published as soon as it is available. "Nyt" comprises statistics on interest rates and exchange rates, financial institutions, securities, central-government finances and central-government debt, the foreign debt, direct investments and external payments. The publication is in Danish with an English translation of the tables. "Nyt" will consist of around 130 issues per year and may be ordered on tel.: +45 33 63 70 00. The subscription price is kr. 700 per year.

As from May 1998 the "Monthly Financial Statistics" will be published, presenting monthly and annual statistics over an extended period. The publication will include English translations. The subscription price will be kr. 240 per year.

Under the Secretariat an information desk has been established in order to centralize the processing of the many general enquiries in writing or by telephone received by the Nationalbank. Previously these were processed by various departments of Danmarks Nationalbank.

In the spring of 1998 the Nationalbank will establish a home page on the Internet with information on the Nationalbank, press releases, publications, banknotes and coins, statistics, market information, as well as centralgovernment debt.

The home page will be available in Danish and English versions at the address http://www.nationalbanken.dk.

Table 10 The Nationalbank's staff, converted into full-time positions

Staff

During 1997 the Nationalbank's staff decreased by seven to 579 full-time employees, cf. Table 10. This decrease was distributed on most employee groups.

In 1997 nine employees resigned from the bank under severance agreements. At the close of 1997 20 employees were on leave, primarily working for international organizations, of whom six at the EMI. Three employees were on leave under statutory leave schemes.

The Nationalbank's administrative personnel on March 1, 1998 is listed on p. 102ff.

As an element of the collective wage agreement concluded with the Staff Association, as from October 1, 1997 a new salary system was introduced for bank and clerical employees and for canteen and cleaning staff. The new salary system comprises fewer job categories and narrower automatic salary scales.

In line with the development in the financial sector, at the beginning of 1998 employees were offered home computers. The objective is to meet the growing demand for use of new technology in banking activities.

The Nationalbank's Management

As Governor by Royal Appointment Ms. Bodil Nyboe Andersen is Chairman of the Board of Governors. The two other members are Mr. Torben Nielsen and Mr. Jens Thomsen.

The Board of Directors re-elected Ms. Jette W. Knudsen, Mr. Kjeld Larsen and Ms. Kirsten Nielsen for a new five-year term from April 1, 1997. The Folketing (Parliament) elected Ms. Karen Højte Jensen as member of the Board of Directors to replace Ms. Anne Birgitte Lundholt who left Parliament on October 9, 1997.

The Board of Directors re-elected Professor Hans E. Zeuthen as Chairman and Ms. Helle Bechgaard as Deputy Chairman for the period April 1, 1997 to March 31, 1998.

For the period April 1, 1997 to March 31, 1998 the Board of Directors re-elected Mr. Uffe Ellemann-Jensen, Mr. Torben Lund, Mr. Erik B. Rasmussen, Ms. Margit Vognsen and Professor Hans E. Zeuthen as members of the Committee of Directors. Two members of the Committee of Directors, Mr. Michael Dithmer and Mr. Karsten Olsen, are appointed by the Royal Bank Commissioner.

The Committee of Directors re-elected Professor Hans E. Zeuthen as Chairman and Mr. Michael Dithmer as Deputy Chairman for the period April 1, 1997 to March 31, 1998.

A list of the Management of the Nationalbank on March 1, 1998 will be found on p. 100f.

The Royal Bank Commissioner re-appointed State-Authorized Public Accountant Mr. John Gath and State-Authorized Public Accountant Mr. Svend Ørjan Jensen to be the Nationalbank's external auditors for the year ending March 31, 1998.

Danmarks Nationalbank's Anniversary Foundation of 1968

The establishment, objective and activities of the Foundation are described in the 1993 Annual Report. In total, the Nationalbank has contributed kr. 60 million to the Foundation since 1968.

The Foundation's capital is invested in bonds. The current revenue is used to promote primarily crafts and artistic design, but also other artistic areas.

In 1997 the Foundation received 1,330 applications, of which 143 were granted in full or in part. In addition, eight grants without prior application were made. Total grants amounted to kr. 5.5 million.

In 1997 the Anniversary Foundation's honorary grant was awarded to Ms. Nanna Ditzel, industrial designer, and Ms. Puk Lippmann, weaver, who each received kr. 100,000. An exhibition of works by the two artists in the Nationalbank's entrance hall was opened concurrently with the awarding of the grants.

On March 1, 1998 the Board of the Foundation comprised Governor Bodil Nyboe Andersen (Chairman), Professor Hans E. Zeuthen (Deputy Chairman), Ms. Bodil Busk Larsen, Ms. Bente Scavenius, Mr. Teit Weylandt and Mr. Mads Øvlisen.

The Nationalbank's Guest Apartments at Nyhavn 18

The Nationalbank has seven guest apartments at Nyhavn 18 which are made available to foreign scientists and artists. Residence in the guest apartments is free and granted from three months up to one year.

In 1997 the guest apartments at Nyhavn 18 were allocated to 13 visitors.

The Committee formed to advise on the allocation of the apartments consists of Professor Ole Feldbæk (Chairman), Dr. Else Marie Bukdahl and Professor Niels I. Meyer.

The Erik Hoffmeyer Travel Grant Foundation

The establishment and objective of the Foundation are described in the 1995 Annual Report.

The first grants were awarded in 1996. In 1997 two grants of kr. 40,000 each were made for further studies abroad: one to the Tamil temple dancer and ethnic affairs consultant Thiageswary Vasanthahumar and the other to the author Carsten Jensen.

On March 1, 1998 the Board of the Travel Grant Foundation comprised Professor Hans E. Zeuthen (Chairman), former Governor Erik Hoffmeyer and former Chief Rabbi Bent Melchior.

(to be continued)