Denmark has a large banking sector. Because Danish people prefer to put their assets in domestic banks. Also, the domestic banking sector in Denmark holds 87.52% of the industry’s total assets. Leaving behind foreign banks which holds only 12.48%.
The three largest banks in Denmark are-
Danske Bank, Nykredit Realkredit, and Realkredit Danmark .
They have control over more than 50% of the total banking assets in the country.
Classification Of Danish Banks :
Systemic Banks in Denmark
Systemic banks are the one which performs activities important for the Danish economy. All these banks are annually identified at the group level.
They classify bank as systemically important only if it meets the following criteria. They should meet the criteria for two years consecutively:
- The balance sheet size as a percentage of GDP exceeds 6.5 per cent
- Bank loans as a percentage of total sector loans exceed 5 per cent
- The bank’s total deposits are greater than 5 per cent as a percentage of total sector deposit
Mortgage Banks in Denmark
Mortgage banks in Denmark are a special type of banks. They provide loans secured by real estate properties. However, Such banks do not allow public deposits and loans. Also, they get fund by mortgage-backed securities. There are currently seven of those banks operating in Denmark.
List Of Banks in Denmark are:
1. Danske Bank
Danske Bank has its headquarter in Copenhagen. The bank was set up back in 1871. The bank has about 19,000 employees and operates in 16 countries. Also, when it comes to customers. The serves 2.7 million personal customers. Along with 236,000 small and medium enterprise customers. Not only this but they have 1,800 corporate and institutional customers too.
Also, the is among one of the largest retail banks in Denmark. The bank reported total revenue of US$ 7 billion in 2016, and a total asset of US$ 550 billion.
2. Nykredit Bank
The Nykredit bank is the oldest bank present in Denmark. As it was set up in 1851. Its headquarter is in Copenhagen.
It provides services like mortgages, retail, and investment. However, it also offers securities and derivatives trading. It also gives many services like investment and debt management services. It also involves the bank in administering and managing invest funds.
The bank has a total staff of 3,560 people. The bank’s total revenue in 2016 was US$ 1 billion, and total assets reached US$ 221 billion.
3. Jyske Bank
Jyske Bank is the 3rd biggest Danish bank, it has US$ 94.3 billion assets. The bank was set up in 1967. Its headquarter is in Silkeborg.
Also, it has 99 branches in Denmark and some subsidiaries in Gibraltar. The bank offers a wide range of financial products and services to individual, small and medium-sized businesses. It has 3,770 employees and about 180,000 shareholders.
Posted By, Shubham Sharma