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Economy and Banking Sector of Denmark

Financial Market Development

Financial Market Development
4.9 (max 7.0), 21st out of 138 countries
Banks' Soundness
5.8 (max 7.0), 18th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Denmark is scored 4.9 out of maximum 7.0 and ranked 21st out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.5 (11th place).

Financial Market Development in Denmark.

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


Soundness of banks is scored 5.8 bringing Denmark into the 18th place.

Soundness of Banks in Denmark.

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

Further Information

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 1.

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
banks
mortgage credit institutions
investment companies
financial institutions
insurance companies
public authirities
Covered Accounts
cash deposits
Maximum Protected Amount
100,000 EUR
Temporary High Balance
10,000,000 EUR
Paid In Currency
EUR

Table 1. 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 (Feb 2019, DKK)
0.09 %  (Dec 2018: -0.08 %)
In February 2019, 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 0.09%.
Deposit Rates in Denmark.

Chart 3. Deposit Rates in Denmark. Source: ECB.

Banking Supervision

Danmarks Nationalbank

Banking Sector Structure

Number of Banks
101
Consolidated Assets (2017)
870.19 bln EUR  (-4.31%)
Recent Changes (2018)
new banks: 3, closed banks: 8

Currently there are 101 credit institutions operating in Denmark.

In 2017 consolidated banking assets in Denmark were 870.19 bln EUR. The consolidated banking assets' evolution is shown at Chart 4 below.

Consolidated banking assets in Denmark.

Chart 4. Consolidated banking assets in Denmark.

Recent structural changes (2013 - 2018) of the banking sector of Denmark are summarised in Table 2.

201320142015201620172018
Number of Opened Banks0104123
Number of Closed Banks1087448

Table 2. Recent structural changes in the banking sector of Denmark.

The list of the most recently opened banks in Denmark is provided in Table 3.

All the credit institutions operating in Denmark can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks36
Branches of foreign banks22
Central banks1
Cooperative banks8
Mortgage banks7
Savings banks27

Table 4. Number of banks by category in Denmark.

There are 22 branches of foreign banks from 7 different countries in Denmark. Table 5 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 Sweden14
 Luxembourg2
 Germany2
 Norway1
 Finland1
 Ireland1
 France1

Table 5. Number of branches of foreign banks in Denmark grouped by country of origin.