24 October 2016, updated 22 October 2020
Danish banking sector is characterized by large size in terms of total assets, high degree of concentration while having a significant number of small banks, and prevailing share of domestic banks over foreign-controlled banks which are represented in Denmark by a few large international groups. The characteristics of the banking sector as a whole are applied to major banks in Denmark as well. Three largest banks comprise about 50 % of total banking assets; 5 banks are considered as systemically important for Danish ecomony. Among 20 largest banks there are 19 banks with domestic capital and only 1 bank is foreign-controlled (Finnish). Mortgage banks, specialized in real-estate financing, are also an important player in Danish banking sector.
Consisting of 103 banks operating in Denmark in 2020, Danish banking sector is relatively large in size: the ratio of consolidated banking assets to gross domestic product, for Denmark shows that the Danish banking sector is about 3 times bigger than the national economy (the ratio is 296.06 %).
The Danish banking sector is dominanted by domestic banks: the total assets of the domestic banks makes up 84.55 % of consolidated total assets of all banks operating in Denmark, leaving 15.45 % to foreign-controlled banks. Out of 103 banks in Denmark, there are 75 domestic banks and 28 foreign-controlled banks (including 12 branches and subsidiaries of Swedish banks).
The banking sector of Denmark is also characterized by a very high degree of concentration: 3 largest banks (Danske Bank, Nykredit Realkredit, Realkredit Danmark) comprise more than 50% of total banking assets.
Systemically important banks (systemic banks) are characterised by undertaking activities that are of significance to the overall Danish economy. In Denmark, systemically important banks are identified at group level every year. A bank is considered as a systemically important if at least one of the following criteria is met for two consecutive years:
Along with the systemic banks, mortgage banks are an important player of Danish banking sector. Mortgage banks are specialized banks, which only provide loans, secured by real estate properties. Mortgage banks do not accept deposits from public, the loans are financed by issuing mortgage-backed securities. At the moment there are 7, operating in Denmark: DLR KREDIT A/S, Jyske Realkredit A/S, LR REALKREDIT A/S, NORDEA KREDIT REALKREDITAKTIESELSKAB, NYKREDIT REALKREDIT A/S, REALKREDIT DANMARK A/S, TOTALKREDIT A/S. Total assets of these mortgage banks are approximately equal to the total assets of systemic banks.
20 largest banks in Denmark in terms of total assets are shown in the table below.
|Rank||Name||Category||Country of Origin||Total Assets||Market Share||Net Income|
|1||DANSKE BANK A/S||Commercial banks||Denmark||2281872.96||28.77 %||15068.15|
|2||NYKREDIT REALKREDIT A/S||Mortgage banks||Denmark||1524336.95||19.22 %||7443.48|
|3||REALKREDIT DANMARK A/S||Mortgage banks||Denmark||912440.43||11.50 %||4395.55|
|4||TOTALKREDIT A/S||Mortgage banks||Denmark||887314.76||11.19 %||2572.97|
|5||NORDEA KREDIT REALKREDITA/S||Mortgage banks||Finland||473277.16||5.97 %||1850.01|
|6||Jyske Realkredit A/S||Mortgage banks||Denmark||384899.17||4.85 %||1117.24|
|7||JYSKE BANK A/S||Commercial banks||Denmark||304099.88||3.83 %||2440.28|
|8||NYKREDIT BANK A/S||Commercial banks||Denmark||225885.91||2.85 %||1287.91|
|9||DLR KREDIT A/S||Mortgage banks||Denmark||173444.42||2.19 %||845.85|
|10||SYDBANK A/S||Commercial banks||Denmark||149952.72||1.89 %||860.91|
|11||SPAR NORD BANK A/S||Commercial banks||Denmark||93245.77||1.18 %||1059.79|
|12||A/S ARBEJDERNES LANDSBANK||Commercial banks||Denmark||58845.74||0.74 %||544.80|
|13||RINGKJØBING LANDBOBANK. A/S||Commercial banks||Denmark||52940.89||0.67 %||978.26|
|14||SAXO BANK A/S||Commercial banks||Denmark||38334.03||0.48 %||39.38|
|15||SPAREKASSEN KRONJYLLAND||Savings banks||Denmark||29867.65||0.38 %||432.07|
|16||LR REALKREDIT A/S||Mortgage banks||Denmark||27509.73||0.35 %||175.13|
|17||Sparekassen Sjælland-Fyn A/S||Savings banks||Denmark||25434.83||0.32 %||226.72|
|18||SPAREKASSEN VENDSYSSEL||Savings banks||Denmark||25398.58||0.32 %||525.03|
|19||LÅN & SPAR BANK A/S||Commercial banks||Denmark||24686.00||0.31 %||175.25|
|20||VESTJYSK BANK A/S||Commercial banks||Denmark||22191.90||0.28 %||477.75|
All the data are for 2019. Total assets and net income are provided in million DKK.