Market developments for banks in 2016

Published 07-07-2017

The Danish economy has genuinely left the financial crisis behind, unemployment is low and property prices in some parts of the country are higher than ever. This has obviously had an effect on banks, which have substantially improved their earnings in recent years. In 2016 alone, the sector's overall profits increased by over 40 per cent.

There is a clear tendency for many financial institutions to increase growth in lending. In 2015 there was typically no growth in lending, while in 2016 the typical growth rate increased to around 6%. Historically speaking, it is in periods of economic upturns that the seeds of the problems in the next crisis are sown. As the economy improves, banks take more risks, which are to some extent underestimated and to some extent excessive in relation to the individual enterprises.

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Last updated 07-03-2024