Liquidity management
These are the overall purposes of the Bank's liquidity management practices:
- to monitor and control developments in the Bank 's short-term and long-term liquidity
- to ensure that the Bank always has a liquidity buffer, both in Danish kroner and in foreign currency
The Bank's liquidity management is based on the regular calculation and reporting of the utilisation of various liquidity limits and on assessments of the trends in various measures.
A high rating ensures a strong profile
We think it is important for the Group to have a strong profile in the international capital markets. We accomplish this by maintaining high credit ratings and by being active issuers in various markets and currencies. Read more about the Group's ratings.
Loan programmes ensure flexibility
In order to ensure flexible and efficient access to the markets, the Bank has established a number of loan programmes that provide the framework for debt issuance. These are the most important programmes:
 |
|
S&P |
Moody's |
| US commercial paper |
USD 20bn |
A-1+ |
P-1 |
| European commercial paper |
EUR 5bn |
A-1+ |
P-1 |
| UK certificate of deposit |
USD 2.5bn |
A-1+ |
P-1 |
| European medium term note |
USD 35bn |
AA- |
Aa1 |
The certificate of deposit and commercial paper programmes usually have shorter maturities, while the medium term note programme is used mainly for longer maturities. You can see contact information for the dealers on Danske Bank's EMTN program.
The loan programmes ensure that the Bank has considerable flexibility when choosing
- maturity
- currency
- interest rate (fixed/floating)
- geographical region (Europe/USA/Asia)
This enables us to adjust our issues to the prevailing market conditions and investors' current preferences.
Capital management
The Danske Bank Group manages its capital according to its financial objectives. Read about these financial objectives.
The Group issues subordinated debt as a component of its overall capital management. This includes supplementary capital, which forms part of the Group's capital base and is thus reflected in the solvency ratio, and hybrid capital, which forms part of core (tier 1) capital.
We usually issue subordinated debt under one of the loan programmes, but we may also issue loans with independent documentation.
Last updated on February 20, 2007