Productivity and Cost-Efficiency in the Danish Financial Sector - Part 2

Monetary review, 4th Quarter 2013

Authors Abildgren, Kim; Kristoffersen, Mark Strøm; Andersen, Nicolai Møller; Kuchler, Andreas
Subject Danish Economy
Type Monetary Review  
Year 2013
Published 27 January 2014
Abstract icon Recent decades have seen a considerable increase in labour productivity in the financial sector, measured by the ratio of lending or financial assets to employment. In terms of the cost-to-income ratio, Danish credit institutions are in the middle of the range, compared with other EU member states. In terms of efficiency, some of the Danish banks are fully able to match the most efficient foreign banks. However, some Danish banks – primarily in the Danish Financial Supervisory Authority's groups 3 and 4 – are some distance away from the most efficient Danish banks. The consolidation in recent years has helped to improve the Danish banking sector's average efficiency.