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.
Chart 1. Financial Market Development in Denmark. Source: WEF.
Soundness of banks is scored 5.7 bringing Denmark into the 35th place.
Chart 2. Soundness of Banks in Denmark. Source: WEF.
Banks in Denmark are mainly focused on the following areas:
Danish Financial Supervisory Authority
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.
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 Banks||0||10||4||1||2||3|
|Number of Closed Banks||10||8||7||4||4||8|
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.
|EnterCard Danmark, filial af EnterCard Group AB, Sverige||July 2018|
|J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A.||April 2018|
|CARNEGIE INVESTMENT BANK, FILIAL AF CARNEGIE INVESTMENT BANK AB (PUBL),SVERIGE||March 2018|
|BNP Paribas S.A. Denmark, filial af BNP Paribas S.A. Frankrig||June 2017|
|UBS Europe, filial af UBS Europe SE, Tyskland||March 2017|
|Citibank Europe plc, Denmark Branch, Filial af Citibank Europe plc, Irland||July 2016|
|MAJ BANK A/S||September 2015|
|EUROCARD DANMARK, FILIAL AF EUROCARD AB, SVERIGE||February 2015|
|RESURS BANK, FILIAL AF RESURS BANK AKTIEBOLAG, SVERIGE||February 2015|
|UBS (Luxembourg) S.A.,Denmark branch, filial af UBS (Luxembourg) S.A.||February 2015|
Table 2. The most recently opened banks in Denmark.
All the credit institutions operating in Denmark can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||22|
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 Origin||Number of Branches|
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:
All these details about deposit guarantee scheme in Denmark are summarised in Table 5.
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.
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) deposit ceiling for Denmark is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Denmark. Source: ECB.