Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.

Financial markets

Working paper: The short-term Danish interbank market before, during and after the financial crisis

The paper studies the microstructure of the short-term uncollateralised Danish interbank market before, during and after the financial crisis.



​The paper studies the microstructure of the short-term uncollateralised Danish interbank market before, during and after the financial crisis. The financial crisis in 2008 was followed by a slowdown in trading activity which might reflect increased awareness of counterparty credit-risk and a reduction in the number of banks due to mergers and acquisitions as well as bank failures. A further reduction in trading activity followed the large increase of the monetary-policy counterparties' current-account limits in mid-2012 in relation to introduction of negative interest rates. In the most recent years, the trading activity has been concentrated on relatively few participants, mainly the Systemically Important Financial Institutions (SIFIs). The analysis is based on data on money-market transactions among Danmarks Nationalbank's monetary-policy counterparties estimated from payment flows from Danmarks Nationalbank's payment system, Kronos, for the period 2003-2015.