DOCSLIB.ORG

DANMARKS NATIONALBANK TERMS and CONDITIONS for ACCOUNTS 1 August 2016 DANMARKS NATIONALBANK TERMS and CONDITIONS for ACCOUNTS

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
DANMARKS NATIONALBANK TERMS and CONDITIONS for ACCOUNTS 1 August 2016 DANMARKS NATIONALBANK TERMS and CONDITIONS for ACCOUNTS DANMARKS NATIONALBANK TERMS AND CONDITIONS FOR ACCOUNTS 1 August 2016 DANMARKS NATIONALBANK TERMS AND CONDITIONS FOR ACCOUNTS Documentation for monetary-policy instruments and settlement of payments in DKK, EUR, SEK, and ISK CONTENT 4 GENERAL 18 SETTLEMENT OF PAYMENTS IN DANISH KRONER AND MONETARY-POLICY INSTRUMENTS 96 SETTLEMENT OF PAYMENTS IN EURO 197 SETTLEMENT OF PAYMENTS IN SWEDISH KRONER 205 SETTLEMENT OF PAYMENTS IN ICELANDIC KRONER 213 TELEFAX FORMATS FOR EMERGENCY PROCEDURES CONCERNING DANISH KRONER GENERAL 1. General Terms and Conditions for Monetary-Policy Instruments and Settlement of Payments in Danish Kroner, Swedish Kronor and Icelandic Kroner 2. Banking Days 3. Fees and Prices 4. Request for Connection to Kronos and the DN Inquiry and Transfer System GENERAL TERMS AND CONDITIONS FOR MONETARY-POLICY INSTRUMENTS AND SETTLEMENT OF PAYMENTS IN DANISH KRONER, SWEDISH KRONOR AND ICELANDIC KRONER AT DANMARKS NATIONALBANK These "General Terms and Conditions for Monetary-Policy Instruments and Settlement of Payments in Danish Kroner, Swedish Kronor and Icelandic Kroner at Danmarks Nationalbank" apply to any matters concerning the below-mentioned types of account holders and accounts in connection with monetary-policy instruments and settlement of payments in Danish kroner, Swedish Kronor and Icelandic Kroner at Danmarks Nationalbank. 1. Definitions • By "current account" is meant a current account denominated in Danish kroner. • By "settlement accounts" is meant accounts that are established and related to the settlement of payments in payment systems or securities settlement systems with Danmarks Nationalbank. • By "account holders" is meant credit institutions and branches thereof, as well as others that have established a current account at Danmarks Nationalbank, and banks, mortgage-credit institutes and branches thereof which Danmarks Nationalbank furthermore has given access to the monetary-policy instruments, cf. "Terms and Conditions for a Current Account in Danish Kroner at Danmarks Nationalbank". • By "credit institutions" is meant such institutions as are defined pursuant to respectively Council directive 2006/48 (on the taking up and pursuit of the business of credit institutions). • By "banks" is meant banks, savings banks and cooperative savings banks authorised by the Danish Financial Supervisory Authority to conduct banking activities pursuant to the Danish Commercial Banks and Savings Banks Act. • By "mortgage-credit institutes" is meant institutions authorised by the Danish Minister of Economic Affairs to conduct mortgage-credit activities pursuant to the Danish Mortgage Credit Act. • By "monetary-policy instruments" is meant interest-bearing deposits to current accounts, monetary-policy loans and certificates of deposit. • A "monetary-policy counterparty" is an account holder that has access to use the monetary-policy instruments. • By "current account fixed limit" is meant the maximum amount fixed at any time for an monetary-policy counterparty, which is calculated at 3.30 p.m. as the total balance of each monetary-policy counterparty on current accounts and other accounts that are normally be emptied at 3.30 p.m. The sum of the total current account limit for the monetary-policy counterparties is equivalent to the sum of the current account limit of each monetary-policy counterparty. • By "transactions" is meant any transaction involving the current account, a settlement account, a SCP account and an automatic collateralisation account, or which concerns monetary-policy loans and certificates of deposit, accounts connected to cash depots and the release, placement and exchange of collateral. • By "Kronos" is meant Danmarks Nationalbank's real-time gross settlement system in Danish kroner. • By "CLS" is meant Continuous Linked Settlement, a clearing and settlement system for foreign exchange transactions in a number of currencies. • By "SCP" is meant the Scandinavian Cash Pool, an automated procedure for cross- border pledging of collateral within Scandinavia, established by Norges Bank, Sveriges Riksbank and Danmarks Nationalbank. 2. Right of signature and power of attorney a) Danish kroner On the establishment of an account in Danish kroner the account holder shall document who is legally entitled to sign on behalf of the account holder ("authorised signatories"). Specimens of the signatures of the authorised signatories shall be enclosed. Changes in the authorised signatories of the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets. The account holder shall inform Danmarks Nationalbank, Banking and Markets, in writing should other persons than the authorised signatories be granted power of attorney to carry out transactions on the basis of a written request ("holders of power of attorney"). If the account holder has access to use the monetary-policy instruments, the notification should be made on the form "Power of Attorney to a Current Account in Danish Kroner and Monetary- Policy Transactions at Danmarks Nationalbank". If the account holder solely holds a current account at Danmarks Nationalbank, the notification shall be given on the form "Power of Attorney to a Current Account in Danish Kroner at Danmarks Nationalbank". Power of attorney to request the withdrawal of securities from a pledged VP account is given on the form "Guidelines for Withdrawal of Assets from a VP Account Pledged for Credit Facilities in Danish Kroner at Danmarks Nationalbank". The aforementioned forms must bear the names of the holders of power of attorney, as well as specimens of their signatures. The notification must be signed by the authorised signatories. Changes in the power of attorney granted by the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets, on the stated forms. If the account holder's business activity has not been registered by the Danish Commerce and Companies Agency the account holder shall in a manner which is satisfactory to Danmarks Nationalbank document the legal validity, etc. of the rights of signature and powers of attorney in accordance with the legislation of the home country. b) Swedish kronor On the establishment of a VP settlement account in Swedish kronor the account holder shall document who is legally entitled to sign on behalf of the account holder ("authorised signatories"). Specimens of the signatures of the authorised signatories shall be enclosed. Changes in the authorised signatories of the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets. The account holder shall inform Danmarks Nationalbank, Banking and Markets, in writing, should other persons than the authorised signatories be granted power of attorney to carry out transactions on the basis of a written request ("holders of power of attorney"). The notification shall be made on the form "Power of Attorney to a VP Settlement Account in Swedish Kronor at Danmarks Nationalbank". The form shall bear the names of the holders of power of attorney, as well as specimens of their signatures. The notification must be signed by the authorised signatories. Changes in the power of attorney granted by the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets, on the stated forms. If the account holder's business activity has not been registered by the Danish Commerce and Companies Agency the account holder shall in a manner which is satisfactory to Danmarks Nationalbank document the legal validity, etc. of the rights of signature and powers of attorney in accordance with the legislation of the home country. c) Icelandic kroner On the establishment of a VP settlement account in Icelandic kroner the account holder shall document who is legally entitled to sign on behalf of the account holder ("authorised signatures"). Specimens of the signatures of the authorised signatories shall be enclosed. Changes in the authorised signatories of the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets. The account holder shall inform Danmarks Nationalbank, Banking and Markets, in writing, should other persons than the authorised signatories be granted power of attorney to carry out transactions on the basis of a written request ("holders of power of attorney"). The notification shall be made on the form "Power of Attorney to a VP Settlement Account in Icelandic kroner at Danmarks Nationalbank". The form shall bear the names of the holders of power of attorney, as well as specimens of their signatures. The notification must be signed by the authorised signatories. Changes in the power of attorney granted by the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets, on the stated forms. If the account holder's business activity has not been registered by the Danish Commerce and Companies Agency the account holder shall in a manner which is satisfactory to Danmarks Nationalbank document the legal validity, etc. of the rights of signature and powers of attorney in accordance with the legislation of the home country. 3. Power of attorney to another participant Holders of current accounts in Danish kroner may grant power of attorney to another Kronos participant to carry out transactions via Kronos to the account holder's accounts denominated in Danish kroner. If power of attorney is granted this must simultaneously be notified to Danmarks Nationalbank, Banking and Markets. Agreements on the granting of power of attorney to another
Load more

Recommended publications
  • Danish Banking Before and After the Napoleonic Wars
    DANISH BANKING BEFORE AND AFTER THE NAPOLEONIC WARS Michael Märcher MICHAEL MÄRCHER 127 DANISH BANKING BEFORE AND A F T E R T H E N A P O L E O N I C W A R S : A SURVEY OF DANISH BANKING, 1736–1857 Expensive armament during ‘The Seven Years’ War (1756-1763) led to excessive note-issuing from the only bank, Kurantbanken, in Denmark. One of the con- sequences was that the notes were declared inconvertible in 1757. This difficult situation for the monetary system and banking in Denmark generally lasted from 1757, through the bankruptcy of the state in 1813 and the founding of the Danish central bank, Danmarks Nationalbank, in 1818, until the reintroduction of the silver standard in 1845. The first two commercial banks in Denmark, Centralkassen i Kjøbenhavn and Fyens Discontokasse, were founded in 1829 and 1846 respectively, and the latter became quite important. The first large, modern, and significant -com 1 mercial bank was however the Privatbanken i Kjøbenhavn founded in 1857. This article presents main features in Danish banking before 1857 and consists of two main chapters: the first covers the period before the Napo- 2 leonic Wars, the second deals with the period after. Figure 1 illustrates the 1. On the first commercial banks in Denmark see e.g. Julius Schovelin (1921): Fyens Diskontokasse 1846-1921, Odense; Einar Cohn (1957): Privatbanken i Kjøbenhavn gennem hundrede Aar: 1857– 1957, I–II, Copenhagen; Svend Aage Hansen (1960): Pengevæsen og kredit 1813–1860, Odense; Ole Lange (2006): Stormogulen: C.F. Tietgen – en finansmand, hans imperium og hans tid 1829–1901, Copenhagen.
    [Show full text]
  • To Nasdaq Copenhagen A/S Correction: New Final Bond Terms
    To Nasdaq Copenhagen A/S 18 February 2021 Correction: New Final Bond Terms for Nykredit Realkredit A/S's Base Pro- spectus dated 13 May 2020 In connection with the opening of new ISINs under Nykredit Realkredit A/S's Base Prospectus dated 13 May 2020 with amendments, Nykredit issues new Final Bond Terms. The Final Bond Terms for series 32H are stated below. Correction: Interest rate spread has been updated from “Fixed at auction” to “0.75 per cent p.a.” in the English version of the Final Terms for both bonds. The Danish versions are unchanged. Nykredit Realkredit A/S's Base Prospectus dated 13 May 2020 and the relevant Final Bond Terms are available for download in Danish and English. In the event of discrepancies between the original Danish text and the English translation, the Danish text shall prevail. The documents can be found on Nykredit's website at nykredit.com/ir. Interest Interest ISIN Currency Bond type Maturity IT/RF* rate Floor rate spread STIBOR3 + DK0009531808 SEK 0.0% 0.75% 1 April 2025 RF Interest rate spread Green STIBOR3 + 1 October DK0009531998 SEK 0.0% 0.75% RF Interest rate spread 2024 *Interest- and refinancing Trigger (IT)/Refinancing Trigger (RF) Questions may be addressed to Group Treasury, Lars Mossing Madsen, tel +45 44 55 11 66, or Christian Mauritzen, tel +45 44 55 10 14. Nykredit Kalvebod Brygge 1-3 DK-1780 Copenhagen V Tel +45 44 55 10 00 www.nykredit.com Nykredit Realkredit A/S CVR no 12 71 92 80 Final Bond Terms dated 15 February 2021 These final bond terms ("Final Bond Terms") only apply to SDO issued under the ISIN stated below (the "Bonds").
    [Show full text]
  • National Bank of Denmark Act
    UNOFFICIAL TRANSLATION THE NATIONAL BANK OF DENMARK ACT Objects of the Bank § 1 "Danmarks Nationalbank" (The National Bank of Denmark) which, at the coming into force of this Act, confer § 33, takes over the "Nationalbanken i Kjøbenhavn" (The Na- tional Bank in Copenhagen) shall as the Central Bank of this country have the object in conformity with this Act and the regulations given under this Act to maintain a safe and secure currency system in this country, and to facilitate and regulate the traffic in mon- ey and the extension of credit. General Capital Fund, Domicile § 2 The General Capital Fund of the Bank shall be Kroner 50 millions. The Head Office and Domicile of the Bank shall be in Copenhagen. Management § 3 The management of the Bank shall be committed to a Board of Directors, a Committee of Directors and a Board of Governors. The members of the Board of Directors, the Committee of Directors and the Board of Governors shall be Danish subjects with domicile in Denmark, besides they shall be of age, enjoy the reputation and confidence prerequisite to the offices (appointments, tasks) and not be deprived of the right to dispose of their estate. § 4 The Board of Directors shall consist of 25 members, viz.: a) 8 members with a seat in the "Rigsdag". These are to be elected according to the rules of § 45 of the Constitution. In case one of these members resigns his seat in Act No. 116 of 7th April 1936 as amended by Act No. 166 of 13th April 1938, Act No.
    [Show full text]
  • Denmark's Central Bank Nationalbanken
    DANMARKS NATIONALBANK THE DANMARKS NATIONALBANK BUILDING 2 THE DANMARKS NATIONALBANK BUILDING DANMARKS NATIONALBANK Contents 7 Preface 8 An integral part of the urban landscape 10 The facades 16 The lobby 22 The banking hall 24 The conference and common rooms 28 The modular offices 32 The banknote printing hall 34 The canteen 36 The courtyards 40 The surrounding landscaping 42 The architectural competition 43 The building process 44 The architect Arne Jacobsen One of the two courtyards, called Arne’s Garden. The space supplies daylight to the surrounding offices and corridors. Preface Danmarks Nationalbank is Denmark’s central bank. Its objective is to ensure a robust economy in Denmark, and Danmarks Nationalbank holds a range of responsibilities of vital socioeconomic importance. The Danmarks Nationalbank building is centrally located in Copen­ hagen and is a distinctive presence in the urban landscape. The build­ ing, which was built in the period 1965–78, was designed by interna­ tionally renowned Danish architect Arne Jacobsen. It is considered to be one of his principal works. In 2009, it became the youngest building in Denmark to be listed as a historical site. When the building was listed, the Danish Agency for Culture highlighted five elements that make it historically significant: 1. The building’s architectural appearance in the urban landscape 2. The building’s layout and spatial qualities 3. The exquisite use of materials 4. The keen attention to detail 5. The surrounding gardens This publication presents the Danmarks Nationalbank building, its architecture, interiors and the surrounding gardens. For the most part, the interiors are shown as they appear today.
    [Show full text]
  • Link) – in Between Cash Payment and Electronic Payment Danish Only
    ANALYSIS DANMARKS NATIONALBANK 26 FEBRUARY 2020 — NO. 3 Cash payments are declining More and more Danes opt out of using cash as a means of payment, and there is considerable evidence that this trend will continue in the future. However, an entirely cashless society is not envisaged in the foreseeable future. 34 per cent Kr. 27 billion of Danes do not carry cash. This figure was used last year in cash payments be­ has more than doubled since 2017. tween private individuals, corresponding to 36 per cent of all cash payments in 2019. Read more Read more Only 2 out of 10 Low use of cash payments among the oldest Danes were does not mean an entirely cashless society made with cash, which is a clear change in within the foreseeable future. behaviour. Read more Read more ANALYSIS — DANMARKS NATIONALBANK 2 CASH PAYMENTS ARE DECLINING One third of Danes do not carry cash for payments Last year, 34 per cent of Danes did not generally­­ The trend towards completely opting out of carrying carry any cash for payments. Especially among cash is broadly based across all age groups. This younger Danes, it was quite common not to carry also applies among senior citizens over the age of cash, cf. Chart 1. This was pointed out by Danmarks 70, with more than one in ten having opted out of Nationalbank’s latest survey of Danish households’ carrying cash entirely since 2017. payment behaviour from the second half of 2019, cf. Box 1. Last year, Danes had kr. 297 on average in their wallets, bags and pockets.
    [Show full text]
  • A Historical Perspective on Interest Rates in Denmark 1875-2003
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Abildgren, Kim Working Paper A historical perspective on interest rates in Denmark 1875-2003 Danmarks Nationalbank Working Papers, No. 24 Provided in Cooperation with: Danmarks Nationalbank, Copenhagen Suggested Citation: Abildgren, Kim (2005) : A historical perspective on interest rates in Denmark 1875-2003, Danmarks Nationalbank Working Papers, No. 24, Danmarks Nationalbank, Copenhagen This Version is available at: http://hdl.handle.net/10419/82370 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu DANMARKS NATIONALBANK WORKING PAPERS 2005 • 24 Kim Abildgren Danmarks Nationalbank A historical perspective on interest rates in Denmark 1875-2003 February 2005 The Working Papers of Danmarks Nationalbank describe research and development, often still ongoing, as a contribution to the professional debate.
    [Show full text]
  • MONETARY and FINANCIAL TRENDS – SEPTEMBER 2020 Stable Financial Markets Support Economy in Recession
    ANALYSIS DANMARKS NATIONALBANK 23 SEPTEMBER 2020 — NO. 17 MONETARY AND FINANCIAL TRENDS – SEPTEMBER 2020 Stable financial markets support economy in recession Calm in financial markets CONTENTS Financial markets have been calm since late March, partly due to central banks’ asset purchase programmes and liquidity measures. Financial 2 KEY TRENDS IN THE FINANCIAL conditions in Denmark are accommodative, which MARKETS helps to boost economic activity in Denmark. 3 THE ECONOMY AND FINANCIAL CONDITIONS 6 MONETARY POLICY AND MONEY Moderate strengthening MARKETS of the Danish krone 10 KRONE DEMAND AND FOREIGN Since March, the Danish krone has seen a EXCHANGE MARKETS moderate strengthening. At end-August, Dan- 11 BOND MARKETS marks Nationalbank had not intervened in the foreign exchange market in the previous five 13 EQUITY MARKETS months, and monetary policy interest rates are 16 CREDIT AND MONEY unchanged. Danmarks Nationalbank’s extra- ordinary lending facility is still being used, but to a limited extent. Low credit growth for Danish corporations Credit growth for Danish corporations has fall- en since March, while rising in the euro area. The difference can be attributed, among other factors, to the economic setback in Denmark being less severe, and to Danish corporations having built up liquidity buffers to a higher extent in the run-up to the covid-19 outbreak. ANALYSIS — DANMARKS NATIONALBANK 2 MONETARY AND FINANCIAL TRENDS – SEPTEMBER 2020 Key trends in the financial markets Since June, monetary policy interest rates in both The market development since June implies that the Denmark and the euro area have remained un- financing costs of households and non-financial cor- changed, and the money market spread has re- porations have declined further and are now leveled mained relatively stable.
    [Show full text]
  • OUTLOOK for the DANISH ECONOMY — DECEMBER 2020 Spread of Coronavirus Delays Recovery
    ANALYSIS DANMARKS NATIONALBANK 9 DECEMBER 2020 — NO. 26 OUTLOOK FOR THE DANISH ECONOMY — DECEMBER 2020 Spread of coronavirus delays recovery Two-speed Danish economy Increased infection rates and new restrictions in Denmark and abroad are again slowing down parts of the economy, delaying recovery. At the same time, activity is high in substantial parts of the economy, leading to a two-speed economy. Growth picking up in 2021 Economic growth is expected to be weak over the winter, picking up in 2021 as the population is vaccinated and restrictions are likely to be eased. Aggregate activity is expected to have largely recovered by 2022. No current need for further fiscal stimulus To ensure a smooth business cycle in industries that are not affected by restrictions, and in which activity is already high, fiscal policy should not be eased further currently. Industries affected by restrictions may still need access to temporary relief measures. ANALYSIS — DANMARKS NATIONALBANK 2 OUTLOOK FOR THE DANISH ECONOMY – DECEMBER 2020 Outlook and economic policy Resurgence of coronavirus delays During the autumn, several business confidence in- Denmark’s economic recovery dicators deteriorated and are now pointing towards The coronavirus pandemic has been resurging in declining economic activity, although the deteri- Denmark and Europe since September, leading to oration is considerably weaker than in the spring. the imposition of a series of restrictions that will The US growth slowdown is less pronounced than hamper economic activity over the winter. On the in Europe, but the recent strong resurgence of the other hand, the roll-out of an effective vaccine has coronavirus in the USA increases the risk that growth moved closer, and with it also the time when many will slow here as well.
    [Show full text]
  • Settlement Times for Payments in Denmark
    Monetary Review 2nd Quarter 2011 - Part 1 99 Settlement Times for Payments in Denmark Jesper Bakkegaard, Tommy Meng Gladov and Anders Mølgaard Pedersen, Payment Systems INTRODUCTION AND SUMMARY When citizens in Denmark pay with their Dankort debit cards or transfer money via online banking services, the banks have to book the trans- actions to the customer accounts and exchange funds. Unlike cash pay- ments, these payments are therefore subject to a certain settlement time, depending on the set-up of the payment system. Today, it usually takes at least one day to execute a Dankort payment or an online bank transfer. Settlement times for payments of one or more days are not contem- porary given that it is now common to exchange data in real time via computers and mobile phones. Moreover, there is a risk that such a long settlement time will make it more difficult to introduce new efficient payment instruments, e.g. money transfers via mobile phones, which require fast settlement if the customers are to benefit fully. In several countries, with which Denmark is often compared, national payment systems have been restructured in recent years, reducing settle- ment times for payments. Typically, it is now possible to settle payments intraday in these countries – and in some instances even in real time – even if the payer and the payee have different banks. In 2009, a working group chaired by Danmarks Nationalbank analysed settlement times for payments in Denmark. This was prompted by a re- quest by the Minister for Economic and Business Affairs, who had been called on by the Folketing (Danish parliament) to examine why settle- ment times were longer in Denmark than in the Netherlands and the UK.
    [Show full text]
  • Danmarks Nationalbank Annual Report 2017
    DANMARKS NATIONALBANK ANNUAL REPORT 2017 DANMARKS NATIONALBANK ANNUAL REPORT 2017 DANMARKS NATIONALBANK ANNUAL REPORT 2017 3 Annual Report 2017 This report is based on information available up to 7 March 2018. See also www.nationalbanken.dk Explanation of symbols: - Magnitude nil 0 Less than one half of unit employed • Category not applicable … Data not available Details may not add up because of rounding. ISSN (Online) 2446-3019 Contents 7 Foreword Report of the Board of Governors Report of the Board of Governors on the activities of Danmarks Nationalbank 10 Monetary policy, financial markets and the real economy 12 The stability of the financial system 13 The Systemic Risk Council 13 Secure payments 14 Result for the year 2017 Organisation 18 Staff 20 Danmarks Nationalbank’s representation on committees, in international organisations, etc. 21 Organisation chart Risk management 22 Financial portfolios 24 Risks on loans to banks and mortgage banks 24 Collateral basis and lending in 2017 24 Operational risk 25 Insurance strategy Accounts of the year 2017 29 Accounts Foreword Danmarks Nationalbank was established in 1818 and regulate the traffic in money and the extension of its 200th anniversary will be celebrated during 2018 credit”. The description of the bank’s tasks also still with a number of activities targeted at the bank’s applies. stakeholders and the general public. Danmarks Nationalbank maintains a safe and secure Danmarks Nationalbank was established in order to currency system by focusing on stable prices and bring order to the currency system after the state secure cash and electronic payments, and by general bankruptcy in 1813.
    [Show full text]
  • Do Firms Behave Differently When Nominal Interest Rates Are Below Zero?
    19 NOVEMBER 2020 — N O . 1 6 4 Do firms behave differently when nominal interest rates are below zero? Kim Abildgren Andreas Kuchler The Working Papers of Danmarks Nationalbank describe research [email protected] [email protected] and development, often still ongoing, as a contribution to the professional debate. DANMARKS NATIONALBANK DANMARKS NATIONALBANK The viewpoints and conclusions stated in this paper are the responsibility of the individual contributors, and do not necessarily reflect the views of Danmarks Nationalbank. 1 WORKING PAPER — DANMARKS NATIONALBANK 19 NOVEMBER 2020 — N O . 1 6 4 Do firms behave differently when nominal interest rates are below zero? Abstract Resume Yes they do! We examine the case of Denmark – the Danmark var det første land i verden, hvor den first country in the world to move its key monetary- pengepolitiske nøglerente blev negativ, og mange policy rate below zero. Using rich microdata and an danske erhvervsvirksomheder har fået negativ event-study framework, we find that firms exposed rente på deres bankindskud. Analysen viser, at de to negative deposit rates to a higher degree than øger deres investeringer i nyt produktionsapparat other firms increase their fixed investments and og etablerer flere nye arbejdspladser sammenlignet employment – after due control for changes in the med virksomheder, som ikke betaler negativ rente. level of interest rates. They also tend to rebalance Der er tale om et eventstudie baseret på their portfolio of liquid assets away from bank omfattende mikrodata, og der tages højde for deposits and reduce their degree of leverage. ændringer i renteniveauet. Virksomhederne ændrer These findings are suggestive of an additional også deres portefølje af likvide aktiver væk fra monetary transmission channel operating as bankindskud og reducerer deres gearing, når de nominal interest rates cross zero and become udsættes for negativ indlånsrente.
    [Show full text]
  • The Critical Mission of the European Stability and Growth Pact
    Occasional Paper No. 70 The Critical Mission of the European Stability and Growth Pact Jacques de Larosiere Published by Group of Thirty© Washington, DC 2004 Contents Page Introduction 5 EU Versus US Economic Performance 9 Understanding the Widening US/EU Growth Gap 10 Implications for the Future 13 The EU Social Model Versus the US Model 15 EU Versus US Social Preferences 17 Differing Views of EU Reform 18 Conclusion 23 Group of Thirty Members 27 Group of Thirty Publications 29 I. Introduction In November 2003, the Stability and Growth Pact was shaken. France and Germany had deviated substantially from budget deficit guidelines set forth in the Pact. They were criticized, in particular by euro-skeptic commentators, some of whom had, earlier on, denounced the European budgetary rules as arbitrary and even harmful. What should we think of those reactions? Are the budgetary slip- pages observed in France and Germany serious? Are the fiscal norms contained in the Maastricht Treaty and in the Stability and Growth Pact adequate? Are the European Monetary Union (EMU) fiscal constraints an exception to generally accepted policy norms? This paper attempts to shed light on this debate in the following manner. It provides an assessment of the consequences of the European slippages in a wider perspective. It reflects on the validity of a perma- nent mechanism of pre-set budgetary rules. In this regard, it attempts to explain why such frameworks are increasingly being adopted and places EMU in the context of a worldwide trend. Finally it endeavors to evaluate the effectiveness of the present European fiscal rules: whether they are adequate or should be amended in the light of experience.
    [Show full text]