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How does changes in interest rates affect the Bank?

April 26, 2017affect Bank changes interest rates

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How does changes in interest rates affect the Bank?

2 Answers

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Danske Bank has liquidity placed in the financial markets. When interest rates increase or fall, the return on this liquidity also increase or falls, with a positive or negative effect on the Bank’s results. Danske Bank Denmark and Realkredit Danmark feel this effect the most because these business areas have the largest amounts of liquidity and shareholders’ funds.

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Danske Bank has liquidity placed in the financial markets. When interest rates increase or fall, the return on this liquidity also increase or falls, with a positive or negative effect on the Bank’s results. Danske Bank Denmark and Realkredit Danmark feel this effect the most because these business areas have the largest amounts of liquidity and shareholders’ funds.