News

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14-12-2017

Danish Government Debt Policy, Strategy 2018

The target for sales of domestic government bonds and T-bills in 2018 is kr. 65 billion and kr. 30 billion, respectively. This is unchanged from 2017. In 2018, a new index-linked bond will be opened, maturing in 2030. The focus will be on issuance in the existing 2-year and 10-year nominal bonds and in the new index-linked bond.

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Government Debt
14-12-2017

New primary dealer model continues in 2018

The central government's primary dealer model with enhanced requirements and payments has strengthened the market for Danish government securities. That is the background for maintaining the model with payments in 2018. The model has contributed to a more liquid market for government securities and hence to lower financing costs for the central government. Liquidity has been increased through narrower bid-ask spreads and a higher number of banks actively trading Danish government securities.

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Government Debt
12-12-2017

Danish households opt out of cash payments

Danes prefer digital payment solutions to cash. Digital payment solutions are chosen by the youngest Danes in particular, and many young Danes carry little or no cash. Thus, many Danes live more or less without using cash, and even more Danes are expected to live without using cash in the future. However, Denmark is not heading for a cashless society. Citizens who wish to hold cash will still have the option to do so in the future.

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Analysis
07-12-2017

Speech by Governor Lars Rohde at the annual meeting of Finance Denmark 2017

Speech by Governor Lars Rohde at the annual meeting of Finance Denmark 4 December 2017.

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Speeches
06-12-2017

Working Paper: The information content in contingent convertible bond prices

Credit institutions are to an increasing extent using Contingent Convertible Bonds, CoCos, to meet part of their capital requirements. This paper provides a thorough introduction to CoCos – the product, its use in capital regulation, the market and the specific risks faced by investors. A variety of models illustrate how the complexity of CoCos makes them difficult to use when assessing the soundness of the issuer; in addition to this, the many CoCo specific risks make it questionable whether the cost of CoCos constitutes a lower bound for the cost of equity.

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Working paper
04-12-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, November 2017

​In November 2017, the foreign-exchange reserve decreased by kr. 114 million to kr. 464.2 billion.

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Press Releases
29-11-2017

Statement of Commitment to Foreign Exchange Global Code of Conduct

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Press Releases
29-11-2017

Several banks are stepping on the accelerator

The profits of banks and mortgage banks are increasing. This has contributed to a boost in optimism in the financial sector and an increase in the institutions' risk appetite, which is reflected in easing of credit standards. Several credit institutions have increased lending to cyclical industries. The aggregate trend in bank lending in combination with other factors indicates that the risks are building up in the financial system. Danmarks Nationalbank assesses that the conditions for activating the countercyclical capital buffer are in place.

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News
29-11-2017

Risks are building up in the financial sector

There is a sentiment of optimism in the financial sector. Profits of the credit institutions are rising, and a considerable lending capacity has been built up. This increases credit institutions’ risk appetite, which is reflected in easing of credit standards. Several credit institutions are increasing lending to cyclical industries and to vulnerable households with high debt ratios. At the same time, rising house prices mean that credit growth may take off suddenly.

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Analysis
29-11-2017

A few banks have capital shortfall in severe recession scenario

Danmarks Nationalbank's semiannual stress test of the banking sector shows that the largest banks are close to, and in some cases tap into, their buffer requirements in a severe recession scenario. The stress test focuses on market risk and the losses banks suffer due to falling stock prices, changes in interest rates and increasing credit spreads.

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Analysis
29-11-2017

Risks are building up in the financial sector

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Press Releases
28-11-2017

The pension sector holds a stable share in foreign portfolio investments

The Danish insurance and pension sector has placed kr. 1,779 billion in foreign portfolio investments by the end of October 2017.

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Portfolio investments
28-11-2017

By end-2017 interest rates of loans for kr. 1,157 billion will have been reset

During 2017 interest rates of mortgage loans for kr. 1,157 billion will be reset. The loans in question are loans with reference rate for kr. 698 billion and adjustable-rate loans for kr. 460 billion.

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Securities
27-11-2017

Households continue to move away from F1 and F2 mortgage type loans

Danish households continue to choose mortgage loans with a fixed interest rate instead of variable-rate loans. Over the last three years, the outstanding amount of variable-rate mortgage loans has been reduced by 7 per cent.

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Banking and mortgage lending, balances
27-11-2017

Private depositors continue to avoid negative interest rates

Private depositors continue to avoid negative interest rates on deposits in Danish commercial banks. In comparison, 53 per cent of bank deposits placed by non-financial corporations and 94 per cent of deposits from insurance and pension funds accrue negative interests. These distributions are some of the results from a semi-annual survey conducted by Danmarks Nationalbank, which as of September covered 94 per cent of all deposits in Danish banks, excluding pooling schemes.

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Banking and mortgage lending, interests
21-11-2017

Speech by Governor Lars Rohde at Nordic Cyber Conference

Speech by Governor Lars Rohde at Nordic Cyber Conference in Copenhagen, 21 November 2017.

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Speeches
21-11-2017

Nordic cyber conference aims to ensure knowledge sharing

​Cyberattacks can threaten the stability of the financial system, so the fight against cybercrime is a pivotal task for Danmarks Nationalbank. Danmarks Nationalbank, in collaboration with the other Nordic central banks, increases its focus on the critical financial infrastructure with a new yearly cyber conference – held for the first time on 21 November.

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Press Releases
20-11-2017

Recommendation for handling failing SIFI groups

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Recommendation
20-11-2017

Recommendation for resolution plans for systemically important financial groups

​In a recommendation, Danmarks Nationalbank states that principles for resolution of SIFIs must be laid down by applying a single point of entry, SPE, strategy for SIFI groups.

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Press Releases
16-11-2017

Denmark's large surplus is temporary

Denmark has had a current account surplus for almost 27 consecutive years. In recent years, the high current account surplus reflects consolidation among households and firms in the wake of the financial crisis. As concluded by Danmarks Nationalbank in an analysis, a part of the extraordinarily high surplus is assessed to be temporary.

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News
16-11-2017

Extraordinarily high current account surplus is temporary

It appears from the analysis that the very high current account surplus is temporary. The surplus has been extraordinarily high since 2010 – also in comparison to the current business cycle. Corporations' net lending rose sharply in the wake of the financial crisis. Today the surplus mainly reflects high household savings. They save in order to reduce their debt. As consumption and investment increase, the current account surplus will be reduced.

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Analysis
16-11-2017

PhD Resident Student Program

Danmarks Nationalbank offers several fellowships to support students enrolled in a Ph.D. program. Resident students are hosted at Danmarks Nationalbank for the duration of their Ph.D. program and collaborate with economists on research projects. Visiting students join the Research Unit for shorter periods and are expected to be at an advanced stage in the completion of their Ph.D. thesis.

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Career
16-11-2017

PhD Short-term Visiting Student Program

Danmarks Nationalbank invites applications for PhD students wishing to be hosted by the Research Unit and currently conducting their research in one of the areas of interest to the bank within Economics or Finance. The fellowships offer support for 6 to 12 months.

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Career
15-11-2017

Speech by Governor Lars Rohde at Central Bank Communications Conference

Speech by Governor Lars Rohde at Central Bank Communications Conference at ECB, 15 November 2017.

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Speeches
15-11-2017

Banks from more than 100 countries send payments via Kronos

The analysis describes how banks from all over the world safely and efficiently send Danish krone payments to each other via Danmarks Nationalbank's payment system, Kronos. Most Danish banks have an account at Danmarks Nationalbank and participate directly in Kronos, while many foreign banks participate indirectly through an account holder. It is important that the individual bank considers the risks that both direct and indirect participation entails.

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Analysis
14-11-2017

Danish outward FDI decreased in 3rd quarter

Danish outward FDI decreased by kr. 9.4 billion in 3rd quarter 2017. Equity investments were reduced by kr. 11.6 billion, whereas intercompany debt and trade credits rose by kr. 2.2 billion.

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Foreign direct investment, flows
06-11-2017

Speech by Governor Lars Rohde at Aarhus Symposium

Speech by Governor Lars Rohde at Aarhus Symposium, 3 November 2017.

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Speeches
02-11-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, October 2017

​In October 2017, the foreign-exchange reserve decreased by kr. 24 million to kr. 464.3 billion.

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Press Releases
02-11-2017

Working Paper The Global FDI Network: Searching for Ultimate Investors

This paper addresses three types of geographical decoupling in foreign direct investment (FDI), i.e., challenges when using traditional FDI data as a proxy for real economic integration between economies: (i) large bilateral asymmetries between inward and outward FDI, (ii) the role of special purpose entities (SPEs), and (iii) the effect of moving from immediate counterpart economy to ultimate investing economy (UIE). A unique global FDI network is estimated, where SPEs are removed and FDI positions are broken down by the UIE.

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Working paper
31-10-2017

Speech by Governor Lars Rohde at European Economics and Financial Centre Seminar

Speech by Governor Lars Rohde at European Economics and Financial Centre Seminar, 31 October 2017.

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Speeches
31-10-2017

Interest in mixed investment funds in Denmark is growing

Danish households have invested kr. 33 billion in mixed investment funds during the past 12 months.

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Investment funds
30-10-2017

Speech by Governor Per Callesen at CBS' 100 years celebration event

Speech by Governor Per Callesen at CBS' 100 years celebration event.

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Speeches
30-10-2017

Speech by Governor Hugo Frey Jensen at the Official Monetary and Financial Institutions Forum

Speech by Governor Hugo Frey Jensen at the Official Monetary and Financial Institutions Forum, 30 October 2017.

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Speeches
27-10-2017

Broader ownership in mortgage bonds

The mortgage bonds for financing fixed-rate loans have a broader ownership base than earlier. In September 2017 the concentration of owners was low for about 80 per cent of the bond series.

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Securities
27-10-2017

Foreign investors buy long-term Danish mortgage bonds

There is a solid international interest in Danish mortgage bonds. Since January 2015, foreign portfolio investors have invested kr. 128 billion, of which kr. 18 billion in September 2017 alone.

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Portfolio investments
26-10-2017

Instalments on mortgage loans continue to increase

Instalments on households' mortgage loans have increased since the financial crisis. In the first three quarters of 2017 the total instalments were DKK 24.3 bn.

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Banking and mortgage lending, interests
26-10-2017

Lending to private customers increases for medium-sized banks

In September 2017 the largest Danish banks' decreased their lending to private customers by DKK 24 bn (10 pct.) compared with the previous year. In contrast, the medium-sized banks increased their lending to private customers by DKK 9 bn (8 pct.).

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Banking and mortgage lending, balances
20-10-2017

Economist/Senior Economist/Adviser

Do you want to be a part of our new, independent research unit?

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Career
13-10-2017

Foreign direct investment increased in 2016

In 2016 the value of Danish outward foreign direct investment, FDI, increased by kr. 87.8 billion, so that the total stock of outward FDI amounts to kr. 1,241.3 billion, cf. Chart 1. The change can be attributed to equity investments of kr. 58.9 billion and intercompany debt of kr. 17.5 billion. Equity investments are driven by capital formation and issuance of intercompany debt in existing arrangements, primarily in Europe, Asia and the USA.

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Foreign direct investment, stocks
10-10-2017

Danmarks Nationalbank's comment on the Danish Economic Council's discussion paper, autumn 2017

The Danish Economic Council's meeting. Danmarks Nationalbank's comment on the Danish Economic Council's discussion paper, autumn 2017.

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Statements
03-10-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2017

​In September 2017, the foreign-exchange reserve decreased by kr. 0.12 billion to kr. 464.3 billion.

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Press Releases
02-10-2017

Speech by Governor Lars Rohde at MMF Policy Conference

Speech by Governor Lars Rohde at MMF Policy Conference in London, 2 October 2017.

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Speeches
02-10-2017

Working Paper: The ECB's unconventional monetary policy and the role of exchange rate regimes in cross-country spillovers

We study the impact of the ECB's large scale asset purchase programme on selected euro area and neighbouring countries with a particular focus on the role of the exchange rate regime. The effects of the programme are assessed by conducting an event study as well as by estimating a structural VAR model using a shadow short rate as a measure of the monetary policy stance. We find that the programme has contributed to reducing longer-term bond yields in the euro area as well as in neighbouring countries.

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Working paper
02-10-2017

Government bond spread unaffected by ECB QE

The yield spread between Danish and German government bonds has not been affected by the 2015 announcement by the European Central Bank (ECB) that it planned to purchase government bonds in the market, working paper shows.

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News
02-10-2017

Speech by Governor Per Callesen at 3S' board seminar 2 October 2017

Presentation (only in Danish) and background note on growth rates, reforms and risk of overheating from Governor Per Callesen's speech at 3S' board seminar 2 October 2017.

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Speeches
29-09-2017

Diffusion of new knowledge benefits firms' productivity

Productivity growth in the Danish economy since 1995 has been lower than previously. This reflects weak productivity growth in services, while manufacturing has maintained its strong momentum. The decline in productivity growth is an international trend. Growth in aggregate productivity is broad-based in Denmark. It is not only driven by a small group of high-productivity firms. This indicates diffusion of knowledge and technological advances. Productivity levels vary considerably across firms within the same industry.

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Analysis
25-09-2017

The Faroese economy – Boom and labour market pressure

The Faroese economy is booming. Unemployment is low, and the construction sector, in particular, is reporting labour shortages. As in earlier boom periods, Faroese fiscal policy seems to be procyclical, with a resultant risk that the economy will overheat. The Faroese government should tighten the fiscal policy, and with the economy in good shape, now is a good time to address the long-term challenges of public finances.

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Analysis
13-09-2017

Outlook for the Danish economy – Solid upswing with increased labour market pressure

The ongoing upswing in the Danish economy is solid, and the labour market pressure has increased. Growth in GDP is projected to rise to 2.3 per cent this year from 1.7 per cent last year, and the Danish economy will be in a boom in the coming years. So far, the upswing has been balanced. There is room for higher pressure on the economy during the boom, but overheating may occur suddenly and vigorously. The government should be prepared to initiate a fiscal tightening with a view to dampening growth in demand.

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Analysis
13-09-2017

The Danish economy is in a strong upswing

The current upswing in the Danish economy is solid. The growth in GDP is expected to increase to 2.3 per cent in 2017 from 1.7 per cent in 2016. This is an upward adjustment compared with Danmarks Nationalbank's March forecast. So far the recovery during the upswing has been balanced. Although the employment rises rapidly and the pressure on the labour market – especially in the construction sector – intensifies, there is a good chance that the balanced development can continue.

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News
13-09-2017

Monetary and financial trends - Stable krone and limited intervention

In the last six months, the Danish krone has been stable slightly on the strong side of the central rate vis-à-vis the euro. In the beginning of this period, Danmarks Nationalbank intervened modestly in the foreign exchange market. Danmarks Nationalbank has kept its monetary policy rates unchanged. Growth in total lending to households and the corporate sector has been moderate. The level of debt is still relatively high.

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Report
13-09-2017

The economy is in a solid upswing, but it is important to avoid overheating

​Danmarks Nationalbank expects the gross domestic product, GDP, to grow by 2.3 per cent this year. In 2018 and 2019, growth is expected to be 1.8 and 1.7 per cent, respectively.

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Press Releases
13-09-2017

Once again labour shortage in construction

The share of construction firms reporting labour shortage has almost reached the level in the mid-00s. Experience testifies to labour shortage affecting all types of construction firms when labour market pressures are high. Further stimulation of demand for construction services would not be advantageous in the current cyclical position.

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Analysis
12-09-2017

Housing taxation agreement stabilises house prices

The effects on house prices of the Housing Tax Agreement are analyzed. From 2021, housing taxes will again dampen fluctuations in house prices and thus economic cycles in general. Towards 2021, the agreement stimulates real estate prices outside the big cities, while lowering prices, e.g. on apartments in Copenhagen. Finally, it is shown that for most home buyers there is no financial incentive to advance home purchases to before 2021 just to ensure a tax reliefe.

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Analysis
04-09-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2017

​In August 2017, the foreign-exchange reserve increased by kr. 0.6 billion to kr. 464.4 billion.

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Press Releases
18-08-2017

Danmarks Nationalbank's statement to The Danish Competition Council's analysis of the competition in the market for mortgage credit

Danmarks Nationalbank finds it positive that the analysis brings into focus the question of how a basis for enhanced competition in this market can best be achieved. Overall, Danmarks Nationalbank agrees with The Danish Competition Council's recommendation on potential amendments to financial regulation.

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Statements
16-08-2017

Greenland Challenged Despite Strong Fisheries

Strong economic growth in Greenland in 2016 and 2017 is to a large extent attributable to fisheries. Rising building and construction investments have also boosted growth in Greenland's economy. Despite the good times, the Greenlandic politicians need to address a number of major challenges. It is difficult to combine a sound economy with independence.

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Analysis
16-08-2017

Working Paper: A new approach to modelling banks' equity volatility: Adding time-to-maturity jumps

Time-to-maturity is introduced alongside leverage and asset volatility to explain equity volatility. The time-to-maturity can be interpreted as investors' views on when the firm will be liquidated and thereby relates to their view on the funding and solvency situation of the bank. Results for large European banks indicate that changes to the perceived time-to-maturity can indeed partly explain changes in observed equity volatility.

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Working paper
08-08-2017

Working Paper: Modelling Fire Sales From Regulatory Cliff Effects

This paper investigates fire sales triggered by regulatory cliff effects induced by the loss of Capital Requirements Regulations (CRR) compliance on covered bonds.

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Working paper
02-08-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2017

​In July 2017, the foreign-exchange reserve decreased by kr. 0.05 billion to kr. 463.9 billion.

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Press Releases
10-07-2017

The banking union - in brief

The banking union consists of two elements. One is a strong single supervision of all large European banks. The other is a uniform and consistent practice for crisis management in relation to large and cross-border European banks. Danmarks Nationalbank believes that Denmark should join the banking union. In short, it is Danmarks Nationalbank's assessment that participation will benefit Danish households and firms.

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Other Publications
06-07-2017

Reply to the Danish Financial Supervisory Authorithy's Discussion Paper on the Fit & Proper Regulations

Danmarks Nationalbank does not specifically address the individual aspects of the Fit & Proper regulations highlighted in the Danish Financial Supervisory Authority's discussion paper. On a more general basis, Danmarks Nationalbank finds it essential to maintain the owners' and management's full responsibility for the sound operation of a credit institution. The EU Fit & Proper regulations give the member states a certain degree of flexibility. In Danmarks Nationalbank's view, no Danish rules or practices generally expanding the Danish Financial Supervisory Authority's Fit & Proper tasks relative to the current regime should be implemented.

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Consultation Response
04-07-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, June 2017

​In June 2017, the foreign-exchange reserve decreased by kr. 0.04 billion to kr. 463.9 billion.

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Press Releases
04-07-2017

Comment on the launch of review on Danish participation in EU Banking Union

Danmarks Nationalbank's comments on the government's decision to launch a review on Danish participation in EU Banking Union.

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Statements
03-07-2017

Speech by Governor Lars Rohde at the Swiss finance policy seminar

Speech by Governor Lars Rohde at the Swiss finance policy seminar, 3 July 2017.

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Speeches
29-06-2017

Working Paper: Consumption and savings in a low interest-rate environment

This paper studies consumption and savings decisions of Danish households before and during the financial crisis as well as in the more recent years characterized by negative policy rates.

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Working paper
29-06-2017

The Danes' consumption and saving patterns are still affected by the financial crisis

7-8 years after the onset of the financial crisis, it is still affecting the Danes’ consumption and saving patterns. The vast majority of Danish households reduced their consumption immediately after the onset of the financial crisis, but since then diverging patterns have been seen for net savers and net borrowers among the households.

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News
22-06-2017

Danish Government Debt Management Policy - Strategy announcement 2nd Half of 2017

The target for issuance of domestic government bonds in 2017 is maintained at kr. 65 billion in order to increase the outstanding volume of new bonds and ensure continuity in issuance policy. The target for T-bills at year-end is also maintained unchanged at kr. 30 billion.

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Government Debt
21-06-2017

Danmarks Nationalbank's comments on financing social housing with government bonds

Danmarks Nationalbank's comments on the government's proposal to finance social housing with government bonds instead of mortgage-backed securities.

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Statements
16-06-2017

Working Paper: Financial Cycles: What are they and what do they look like in Denmark?

In this paper we study what financial cycles are, what they look like in Denmark, and what their relationship is with the real economy. We show that medium term swings in house prices and credit should be used as an illustration of the financial cycle in Denmark.

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Working paper
14-06-2017

Optimism in the banking sector provides breeding ground for increased risk-taking

Danmarks Nationalbank's semiannual analysis of financial stability shows that the largest banking groups achieved their best ever overall performance in 2016 and the banks' financial statements for the 1st quarter of 2017 also recorded sound profits. The banks' earnings are underpinned by temporary effects from very low loan impairment charges. The economic upswing, rising house prices and the continued low level of interest rates may lead to a general perception of low credit risk. This may intensify the pressure on the banks' credit standards. The large banks comply with the current capital requirements, but their capital base is lower than that of other Nordic banks. Results from Danmarks Nationalbank's accounts-based stress test show that, in a severe recession scenario, few of the systemic banks will have a small capital shortfall relative to the buffer requirements.

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Analysis
14-06-2017

Good times in the banking sector but risk of speed blindness

Bank earnings are record high. In some areas, current developments are similar to developments in the period up to the financial crisis. Large Danish banks have a lower capital base than that of other Nordic banks.

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News
14-06-2017

Largest banks close to buffer requirements in stress test

Danmarks Nationalbank's semiannual stress test of the Danish banking sector shows that the largest banks generally have capital in excess of the regulatory requirements in a severe recession scenario. However, some banks are close to drawing on their capital buffers, and a few tap into their buffers.

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Analysis
06-06-2017

New commemorative coin to mark the golden wedding anniversary of HM the Queen and HRH Prince Henrik on 10 June

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Press Releases
06-06-2017

Banks' capital accumulation does not hurt GDP growth

The capital ratios of Danish banks have increased in the years following the financial crisis. There are no adverse effects on GDP growth of banks' capital accumulation. This is the conclusion of Danmarks Nationalbank's analysis of banks' capital accumulation and GDP growth.

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Analysis
02-06-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, May 2017

​In May 2017, the foreign-exchange reserve decreased by kr. 0.2 billion to kr. 463.9 billion.

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Press Releases
30-05-2017

Danmarks Nationalbank's comments on the Danish Economic Council's discussion paper, spring 2017

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Statements
29-05-2017

ESCB Central Banks welcome the publication of Foreign Exchange Global Code of Conduct

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Press Releases
22-05-2017

New Model has improved Liquidity in the Danish Government Securities Market

New primary dealer model is off to a good start with an improvement in liquidity. Price transparency has improved with narrower bid-ask spreads and increasing turnover in the interdealer market. All 11 primary dealers in Danish government bonds have quoted substantially tighter prices and the turnover is to a lesser degree than before concentrated on a few banks.

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Analysis
17-05-2017

Dankort Assessment

Danmarks Nationalbank has assessed Dankort, which is owned by Nets A/S, against the standards for card payment schemes established by the European Central Bank, ECB. Dankort's performance is stable with a high degree of availability, and Dankort fraud is low by international comparison. Danmarks Nationalbank's assessment contains recommendations to Nets A/S about, inter alia, more systematic knowledge management in relation to Dankort. Other recommendations concern expansion of Dankort-related risk analyses and strengthening the framework for decision-making and communication. Danmarks Nationalbank oversees the payment and settlement systems in Denmark in order to promote safe and efficient settlement of payments, securities trades, etc. Dankort is one of the solutions subject to this oversight.

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Report
17-05-2017

Danmarks Nationalbank's Dankort assessment

​Danmarks Nationalbank has assessed Dankort, which is owned by Nets A/S, against the standards for card payment schemes established by the European Central Bank, ECB. Dankort's performance is stable with a high degree of availability, and Dankort fraud is low by international comparison. Danmarks Nationalbank's assessment contains recommendations to Nets A/S about, inter alia, more systematic knowledge management in relation to Dankort.

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Press Releases
11-05-2017

Denmark contributes to a strong IMF

The main objective of the International Monetary Fund, IMF, is to promote global economic and financial stability. A well-functioning IMF with sufficient funding is a prerequisite for solving this task. A strong IMF is a matter of Danish interest, as Denmark is a small, open economy and therefore highly dependent on and exposed to external conditions. Over the last decade Denmark, via Danmarks Nationalbank, has increased its total commitments to the IMF. Risks associated with loans to the IMF are extremely low due the high creditworthiness of the IMF.

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Analysis
02-05-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, April 2017

​In April 2017, the foreign-exchange reserve decreased by kr. 0.03 billion to kr. 464.1 billion.

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Press Releases
28-04-2017

Opening of 0.25 per cent bullet loan 2020

On 17 May 2017, 0.25 per cent bullet loan 2020 (ISIN: DK0009923641) will be opened. The interest payment date will be 15 November and the government bond will be repaid on 15 November 2020. The new bond will replace 0.25 per cent bullet loan 2018 as key on-the-run issue. After this the central government can conduct buy-backs in 0.25 per cent bullet loan 2018.

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Government Debt
20-04-2017

Speech by Governor Lars Rohde at Danske Bank Markets Event in New York City

Speech by Governor Lars Rohde at Danske Bank Markets Event in New York City, 20 April 2017

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Speeches
04-04-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, March 2017

​In March 2017, the foreign-exchange reserve decreased by kr. 2.5 billion to kr. 464.1 billion.

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Press Releases
04-04-2017

China’s significance for Danish exports continues to grow

Danish exports to China are playing an ever increasing role. Accounting for just under 6 per cent of final demand for Danish exports, China is approaching the UK, Denmark’s fourth largest export market.

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News
30-03-2017

Danes are Front-Runners in Electronic Payments

Danes prefer electronic payments, especially payment cards. In fact they use cards more than any other EU citizens. The electronic payments are supported by the payments systems which ensure that the payments are settled quickly and smoothly. E.g. it is possible to transfer funds in seconds. Denmark is a digital front-runner according to the European Commission's index. This is among other factors attributable to the targeted public-sector focus on digitisation.

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Analysis
22-03-2017

Working Paper: What are the effects of changes in taxation and new types of mortgages on the real economy? - The case of Denmark during the 00's

What are the effects of introducing interest-only, flexible-rate mortgage contracts and a tax-freeze on housing wealth for the real- and financial economy? I study this within a medium-size DSGE-model with housing, banking and financial frictions, and the coexistence of flexible, fixed rate and interest-only mortgage contracts. I find that the introduction and the adaptation of flexible rate and interest-only mortgage contracts together with a freeze of taxation of the housing wealth can explain around 1/3 of the real house price gap in Denmark during the period 2004-06 and 15-40 per cent of the output gap. The household debt-to-GDP would have been almost constant instead of increasing by 20 percentage points. Finally, the analysis points to a more volatile economy after the implementation of the structural changes to the economy.

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Working paper
21-03-2017

Production of Danish coins in Finland has begun

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Press Releases
20-03-2017

For the first time in at least 183 years, the Danish central government has no foreign currency loans

On 20 March 2017, the Danish central government will repay its last loan in foreign currency, totalling 1.5 billion dollars. Thus – for the first time in at least 183 years – the Danish central government has no foreign currency loans.

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News
17-03-2017

Working Paper: Non-Parametric Estimation of Marginal Propensities to Consume: The Case of Regression Splines

We investigate a non-parametric method to estimating marginal propensities to consume (MPC) using regression splines.

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Working paper
15-03-2017

Balanced growth in the Danish economy

​GDP growth is expected to rise to 1.6 per cent in 2017 from 1.1 per cent in 2016. An increase of 1.6 per cent is also expected for 2018 and 2019. This is slightly higher than in the projection from December.

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Press Releases
15-03-2017

Outlook for the Danish economy – Balanced recovery in the Danish economy

The Danish economy is in a balanced upswing and heading towards a moderate boom. Structural factors may dampen stronger dynamics and thus the growth outlook is more limited than previously. The growth in GDP is expected to increase to 1.6 per cent in 2017 from 1.1 per cent in 2016. The growth scenario in Danmarks Nationalbank's forecast assumes that labour supply will increase as a result of reforms already implemented. The growth scenario can be affected by a build-up of strong labour market pressure and the economy abroad including the US fiscal policy.

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Analysis
15-03-2017

Monetary and Financial Trends - Stable krone and calm money market

In recent months the Danish krone has been stable vis-á-vis the euro at a slightly stronger level than the central rate. In February, demand for kroner rose due to increased focus on uncertainty about the outcome of the upcoming elections in Europe. Hence, Danmarks Nationalbank intervened and sold kroner for kr. 4.7 billion in February. Danmarks Nationalbank has kept the rate of interest on certificates of deposit at -0.65 per cent since January 2016. Money market rates in Denmark and the euro area have been stable for an extended period of time. Fluctuations in short-term Danish money market rate have been reduced after Danmarks Nationalbank's introduction of daily purchases and sales of certificates of deposit.

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Report
15-03-2017

Annual Report 2016

Danmarks Nationalbank's accounts for 2016 show a profit of kr. 3.9 billion corresponding to an increase of kr. 0.3 billion compared to the previous year. The increase mainly reflects capital gains on the gold stock, income from sales of fixed assets and gains on the financial portfolios. Exchange rate adjustments and deposits at negative interest rates have a downward impact on the profit. Danmarks Nationalbank transfers kr. 845 million to the central government, while the rest of the profit is transferred to Danmarks Nationalbank's General Reserves.

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Report
15-03-2017

Prospects of continued balanced growth in the Danish economy

The Danish economy is in a balanced upswing and heading towards a moderate boom. Structural factors may dampen stronger dynamics and thus the growth outlook is more limited than previously. The growth in GDP is expected to increase to 1.6 per cent in 2017 from 1.1 per cent in 2016. The growth scenario in Danmarks Nationalbank's forecast assumes that labour supply will increase as a result of reforms already implemented. The growth scenario can be affected by a build-up of strong labour market pressure and the economy abroad including the US fiscal policy.

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News
15-03-2017

Annual report 2016

Danmarks Nationalbank's accounts for 2016 show a profit of kr. 3.9 billion corresponding to an increase of kr. 0.3 billion compared to the previous year. The increase mainly reflects capital gains on the gold stock, income from sales of fixed assets and gains on the financial portfolios. Exchange rate adjustments and deposits at negative interest rates have a downward impact on the profit. Danmarks Nationalbank transfers kr. 845 million to the central government, while the rest of the profit is transferred to Danmarks Nationalbank's General Reserves.

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Report
13-03-2017

Higher Growth Figures Confirmed the Upswing

Statistics Denmark’s revised GDP figures published last autumn provide a more complete picture of the Danish economy as being in an upswing since 2012. However, the new figures do not change Danmarks Nationalbank’s assessment of the state of the Danish economy to any significant extent. Danmarks Nationalbank’s forecasts of GDP growth after the 2008-09 downturn was accurate. The GDP revision emphasises that assessments of current developments in the Danish economy cannot be based merely on GDP.

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Analysis
02-03-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, February 2017

​In February 2017, the foreign-exchange reserve increased by kr. 8.8 billion to kr. 466.6 billion.

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Press Releases
01-03-2017

Cyber resilience in the financial sector

The core financial sector participants in Denmark have strong focus on cyber security, but there is room for improvement. That is the main conclusion of Danmarks Nationalbank's and the Danish Financial Supervisory Authority's questionnaire survey.

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Analysis
28-02-2017

Response to the Danish Financial Supervisory Authority's Discussion Paper

Response to the Danish Financial Supervisory Authority's Discussion Paper Danmarks Nationalbank's response to the Danish Financial Supervisory Authority's Discussion Paper Main principles for resolution of small and medium-sized banks and determination of minimum requirements for own funds and eligible liabilities (MREL)

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Consultation Response
27-02-2017

Working Paper: Revisiting potential output in Denmark

This paper provides a detailed description of Danmarks Nationalbank's current methodology for estimating potential output and output gaps in the Danish economy.

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Working paper
22-02-2017

New 10-year benchmark bond

As of 1 March 2017, the 10-year nominal on-the-run issue, 0.5 per cent bullet loan 2027, becomes the new 10-year benchmark bond. Hereafter, 1.75 per cent bullet loan 2025 will no longer have benchmark status.

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Government Debt
15-02-2017

Working Paper: Incorporating Funding Costs in Top-down Stress Tests

The paper discusses how to measure bank risk based on market data, the relationship between risk measures and bank funding costs and how increased funding costs can be incorporated in a stress test.

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Working paper
02-02-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2017

​In January 2017, the foreign-exchange reserve increased by kr. 1.8 billion to kr. 457.8 billion.

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Press Releases
31-01-2017

Danish Government Borrowing and Debt 2016

​Denmark's central government debt amounted to 23 per cent of GDP at the end of 2016. The debt thus remained low, and Denmark retained the highest possible credit rating with a stable outlook. This appears from the report Danish Government Borrowing and Debt 2016 which Danmarks Nationalbank has published today.

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Press Releases
31-01-2017

Danish Government Borrowing and Debt 2016

Denmark's central government debt amounted to 23 per cent of GDP at the end of 2016. The debt thus remained low, and Denmark re-tained the highest possible credit rating with a stable outlook. The central government's financing requirement was met at record-low yields in 2016. The central government issued nominal bonds at an average yield to maturity of 0.1 per cent and an average maturity of 7 years. Demand for Danish government bonds in the auctions was high. In line with the strategy, government bonds totalling kr. 63 bil-lion were issued via auctions and tap sales. The central government played an active role in the secondary market to support liquidity in the Danish government bond market, which improved compared with 2015.

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Government Debt
19-01-2017

Enhanced Requirements and Payments are to strengthen the Danish Government Securities Market

From 1 April 2017, the central government is introducing payments to banks that quote prices on a current basis and act as distribution channels for Danish government bonds, i.e. function as primary dealers. Total payments will amount to a maximum of kr. 25 million p.a. The banks making the greatest efforts will receive the largest payments. At the same time, the requirements for primary dealers will be enhanced.

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Analysis
19-01-2017

Enhanced Requirements and Payments are to strengthen the Danish Government Securities Market

From 1 April 2017, the central government is introducing payments to banks that quote prices on a current basis and act as distribution channels for Danish government bonds, i.e. function as primary dealers. Total payments will amount to a maximum of kr. 25 million p.a. The banks making the greatest efforts will receive the largest payments. At the same time, the requirements for primary dealers will be enhanced.

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Government Debt
18-01-2017

Too-big-to-fail can be solved inexpensively

Danmarks Nationalbank’s calculations show that the price of solving the too-big-to-fail issue for the Danish mortgage banks is low. Introduction of a minimum requirement for own funds and eligible liabilities, MREL, corresponding to 8 per cent of the mortgage banks’ total liabilities and own funds would justify an increase of administration margins by between 0.02 and 0.11 percentage point. An MREL would allow the mortgage banks to write down up to 8 per cent of their liabilities and own funds. Hence, the Resolution Fund can be used in the event of very large losses.

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Analysis
18-01-2017

Low price for protecting the mortgage credit sector against crises

Today Danmarks Nationalbank publishes a response to the consultation on the European Commission’s proposal to revise the requirements for credit institutions. Danmarks Nationalbank recommends that mortgage institutions are subject to the same regulation that applies to banks.

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News
18-01-2017

Denmark's fixed exchange rate policy: 30th anniversary of unchanged central rate

The 12 January 2017 marks the 30th anniversary of the Danish central rate. Looking back, Denmark's fixed exchange rate policy has turned out to be very resilient, even through economic and financial crises along the way.

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News
11-01-2017

Opening of 0.50 per cent bullet loan 2027

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Government Debt
03-01-2017

Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2016

​In December 2016, the foreign-exchange reserve increased by kr. 1.8 billion to kr. 451.6 billion.

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Press Releases
19-12-2016

Financial Stability 2nd Half 2016

Net interest income is under pressure from low interest rates. Earnings are still being lifted by large reversals of previous years' loan impairment charges. The current combination of economic growth and rapidly increasing house prices in the cities intensifies the competition for customers.

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Financial Stability
15-12-2016

Danish Government Debt Policy, Strategy 2017

The target for sales of government bonds and T-bills in 2017 is kr. 65 billion and kr. 30 billion, respectively, which is unchanged from 2016. The central government's issuance in 2017 will predominantly be in 2-year and 10-year nominal securities. The government debt policy is still focused on supporting liquidity by being active in the secondary market.

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Government Debt