The Danish payments infrastructure


The Danish payments infrastructure is the network of systems that makes it possible for consumers and banks to exchange payments. Danmarks Nationalbank's system, Kronos, is at the hub of the infrastructure.

Most banks in Denmark hold accounts at Danmarks Nationalbank. Via these accounts and Danmarks Nationalbank's payment system, Kronos, they settle their mutual accounts and their accounts with Danmarks Nationalbank. In addition, the banks use their accounts at Danmarks Nationalbank to settle payments in the following Danish and international payment and settlement systems.

  • Kronos is Danmarks Nationalbank's RTGS (Real-Time Gross Settlement) system for payments in Danish kroner and is primarily used for settlement of large-value, time-critical interbank payments.

  • The Sumclearing, the Intraday Clearing and the Express Clearing are the Danish Bankers Association's settlement systems for settlement of Danish retail payments. Final transfer of money between the banks is effected via accounts at Danmarks Nationalbank.

  • VP settlement, which is owned by VP Securities, is a system for settling securities transactions. In a securities transaction, securities are exchanged via custody accounts in VP, while payment is exchanged via the participants' Kronos accounts. 

  • CLS, which is owned by large international banks, is a multilateral system for foreign-exchange transactions in 17 currencies at present. The krone leg in the banks' foreign-exchange transactions is settled via CLS Bank's account at Danmarks Nationalbank. 

  • Scandinavian Cash Pool is a system for pledging of cross-border collateral for intraday credit in Danish and Norwegian kroner and Swedish kronor. The main principle of SCP is that liquidity raised from the central bank of one country can be pledged as collateral to the central bank of another country. 

  • EuroCCP is a central counterparty in equity transactions and is owned by ABN AMRO and Nasdaq OMX

  • Target2 is the Eurosystem's system for payments in euro and is primarily used for settlement of large-value, time-critical payments between participants. 

​The following chart shows payment flows in the Danish infrastructure for krone payments. Target2 is not included as it handles payments in euro.

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Payment systems

Payment settlement is the transfer of money from a remitter to a recipient. An example is payment using banknotes and coins. However, most payments are settled electronically nowadays via payment systems.