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Economy and Banking Sector of Denmark

Financial System Development

Financial System
86.8, 11th out of 144 countries
Banks' Soundness
78.2, 35th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Denmark is scored 86.8 out of maximum 100.0 and ranked 11th out of 144 analysed economies.

Financial Market Development in Denmark.

Chart 1. Financial Market Development in Denmark. Source: WEF.

Soundness of banks is scored 5.7 bringing Denmark into the 35th place.

Soundness of Banks in Denmark.

Chart 2. Soundness of Banks in Denmark. Source: WEF.

Further Information

Banking Focus

Banks in Denmark are mainly focused on the following areas:

  • regional retail banking
  • cooperative retail banking
  • retail banking

Banking Supervision

Danmarks Nationalbank

Danish Financial Supervisory Authority

Banking Sector Structure

Number of Banks
Consolidated Assets (2019)
920.45 bln EUR  (+7.17%)
Recent Changes (2018)
new banks: 3, closed banks: 8

Currently there are 103 credit institutions operating in Denmark.

In 2019 consolidated banking assets in Denmark were 920.45 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.

Consolidated banking assets in Denmark.

Chart 3. Consolidated banking assets in Denmark.

Recent structural changes (2013 - 2018) of the banking sector of Denmark are summarised in Table 1.

Number of Opened Banks0104123
Number of Closed Banks1087448

Table 1. Recent structural changes in the banking sector of Denmark.

The list of the most recently opened banks in Denmark is provided in Table 2.

All the credit institutions operating in Denmark can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks22
Central banks1
Cooperative banks8
Mortgage banks7
Savings banks27

Table 3. Number of banks by category in Denmark.

There are 24 branches of foreign banks from 7 different countries in Denmark. Table 4 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
SE Sweden14
LU Luxembourg3
DE Germany3
FI Finland1
IE Ireland1
FR France1
NO Norway1

Table 4. Number of branches of foreign banks in Denmark grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Denmark are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Temporary High Balance
10,000,000 EUR
Scheme Participants
all credit institutions operating in Denmark
branches of non-EEA banks
branches of Danish banks abroad
Scheme Exemptions
branches of EEA-banks (covered by their home countries)
Eligible Depositors
natural persons
legal entities, for example
  • public limited companies
  • partnerships
  • foundations
  • associations
Non-Eligible Depositors
mortgage credit institutions
investment companies
financial institutions
insurance companies
public authirities
Covered Accounts
cash deposits
Paid In Currency

Table 5. Deposit guarantee scheme in Denmark.

EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Danish krone)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Danish krone) deposit ceiling for Denmark is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Mar 2020, DKK)
0.04 %  (Feb 2020: 0.15 %)
In March 2020, an agreed annualised deposit rate in local currency (Danish krone) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.04%.
Deposit Rates in Denmark.

Chart 4. Deposit Rates in Denmark. Source: ECB.