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.
Denmark’s financial supervisory body, which regulates the country’s financial markets, divides the country’s banks into the following categories:
• Group 1 banks: These banks work with a capital of at least DKK 65 billion;
• Group 2 banks: Working capital of minimum DKK 12 billion;
• Group 3 banks: Capital of at least DKK 500 million;
• Group 4 banks: with working capital of maximum DKK 500 million.
• Group 5 banks: This group has branches of foreign banks in the country;
• Group 6: these are banks based on the Faroe Islands.
What is the best bank in Denmark?
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 hold only 12.48%.
1. Danske Bank
Danske Bank has its headquarters 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.
website Danske Bank
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 investment 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.
website Jyske Bank
Classification of Danish banks
Systemic Banks in Denmark
Systemic banks are the one that performs activities important for the Danish economy. All these banks are annually identified at the group level.
They classify a 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 percent
Bank loans as a percentage of total sector loans exceed 5 percent
The bank’s total deposits are greater than 5 percent as a percentage of total sector deposit
Mortgage Banks in Denmark
Mortgage banks in Denmark are a special type of bank. They provide loans secured by real estate properties. However, Such banks do not allow public deposits and loans. Also, they get funded from mortgage-backed securities. There are currently seven of those banks operating in Denmark.
Documents needed to open a bank account in Denmark
Individuals must provide the following documents in order to open a standard bank account in Denmark:
• A photo ID, like a valid passport;
• A CPR (the ten-digit unique number of identification which is issued for all Danish residents) number;
• Proof of address in the country;
• An employment contract, if the person in question is working in Denmark.
Can foreigners open a bank account in Denmark?
A CPR number is required to open a bank account in Denmark and is issued once you have become a resident. As a result, you will be unable to open an account as a non-resident.
Can I open a bank account in Denmark before arriving in the country?
Most banks offer online banking, allowing you to begin the process of opening a bank account even before you arrive in Denmark. Depending on your situation, however, some traditional banks may require you to present your documents, including your CPR number, at a local branch upon your arrival in Denmark. This could mean that when you arrive in Denmark, you won’t have a fully functional Danish bank account.
If that’s the case, opening a Danish bank account with a reputable online bank is a great option. The verification process is straightforward, and your card can be mailed to your current address before you relocate. One thing to keep in mind is that if you want all of the services and security features of a traditional bank, you should go with one that has a full banking license rather than an e-money license.
The cover image is somewhere is København, Denmark. Photo by Shane Rounce on Unsplash