Danish banks on their way out of financial crisis
Light at the end of the financial tunnel continues to grow
Danish banks are among the most robust in Europe, according to new data from the European Central Bank (ECB). Economists confirmed that after years of enduring the financial crisis, there are positive signs in the Danish financial sector.
Loan write-down percentages are falling, efficiency is rising and the level of solvency makes Danish banks some of the best positioned in Europe, according to data collected by the ECB.
Jesper Rangvid, a professor of finance at the Copenhagen Business School, said that Danish banks are now better suited to cope with the financial and economic turmoil than they were in the past.
“Danish banks are in a better place to handle any financial relapse than they were when the crisis hit, and they are more able to withstand any shocks than banks in other countries,” Rangvid told Berlingske newspaper.
The most promising sign of health in the Danish financial sector is the solvency of the banks: their ability to pay back creditors that have lent them money. Danish banks have one of Europe’s highest solvency levels.