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Danmarks Nationalbank adjusts account conditions for banks and mortgage-credit institutes (current-account limits)

Banks and mortgage-credit institutes will have their current-account limits adjusted with effect from 27 May 2016. The total current-account limit will remain unchanged at the present level of around 31 billion kr.


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Banks and mortgage-credit institutes will have their current-account limits adjusted with effect from 27 May 2016. The total current-account limit will remain unchanged at the present level of around 31 billion kr.

In connection with the annual evaluation of the current-account limits, the model is adjusted in order to secure a simple and unbiased allocation. Furthermore, the individual current-account limits will take payments and DKK liquidity fluctuations of the individual credit institutions better into consideration.

BACKGROUND ABOUT THE SYSTEM OF CURRENT-ACCOUNT LIMITS

Each monetary-policy counterparty holds a current account at Danmarks Nationalbank. Deposits in these accounts may be used for e.g. transfers between counterparties. The current accounts also function as settlement accounts for Danmarks Nationalbank's lending to and deposits from counterparties and for large payments to and from the central government. Current accounts accrue interest at the current-account rate, which is currently 0 per cent.

A current-account limit has been set, which is a ceiling on the monetary-policy counterparties' total current-account deposits. Any surplus liquid-ity held by the credit institutes is placed in certificates of deposit at the interest rate on certificates of deposit, currently -0.65 per cent.

The overall limit has been broken down into individual limits for the counterparties. Going forward, the individual current-account limits will be determined on the basis of the DKK deposits of the monetary-policy counterparties.

Further information about the current-account limits and the new, indi-vidual limits is available on Danmarks Nationalbank's homepage: http://www.nationalbanken.dk/en/monetarypolicy/instruments/Pages/default.aspx

Enquiries can be directed to Julie Holm Simonsen on tel. +45 3363 6022.