Engelsk

Governor Signe Krogstrup held a presentation for Finansforeningen (CFA Society Denmark) on 11 June 2021 on the subject: ‘Monetary policy is not easy: Fixed-exchange rate regimes and Quantitative Easing’. The presentation provides the background for central banks use of unconventional monetary policy tools, including negative policy rates and quantitative easing. Following, it is discussed how the Danish fixed-exchange rate regimes is affected by the widespread use of unconventional monetary policy by central banks. Finally, possible side effects of unconventional monetary policy are examined. (The presentation is in Danish only).

Danish credit institutions have substantial exposures collateralised by real estate at risk of flooding in future climate scenarios. These exposures could amount to kr. 200 billion by the end of this century. Some credit institutions have a large share of the exposures at risk concentrated in the same geographical area.

The insurance and pension sector is increasingly buying equities. The sector's equity holdings rose from constituting 35 per cent of its total investments in January 2018 to 42 per cent in March 2021. In the same period, the share of bonds was reduced from 56 to 51 per cent, while foreign investment fund certificates etc. decreased from 9 to 7 per cent.

​In May 2021, the foreign-exchange reserve increased by kr. 17.2 billion to kr. 455.9 billion.

Notwithstanding the banks, Danish listed firms paid out almost kr. 38 billion worth of dividends to their shareholders during the first four months of 2021. That is a new record. Banks' dividends were still limited compared to the years before 2020.

For a number of years, foreign investors have bought large amounts of Danish mortgage bonds and today they own more than a quarter of the entire Danish mortgage bond market. However, since last term month, foreign investors have sold both fixed and variable rate mortgage bonds (incl. adjustable rate mortgage bonds, ARM) for a total of kr. 19 billion. A significant part of the amount is due to the maturities of ARM bonds.

Danmarks Nationalbank's comments on The Economic Council's discussion paper, Spring 2021.

In the first four months of 2021, kr. 30.3 billion was added to the Danish homeowners' total mortgage debt. Interest-only debt accounts for two thirds of the increase. Out of homeowners' total mortgage debt of kr. 1,757 billion, kr. 800 billion is now interest-only debt.