These are the overall purposes of the Bank's liquidity management practices:
- to ensure that the Bank always has a liquidity buffer, both in Danish kroner and in foreign currency
- to monitor and control developments in the Bank 's short-term and long-term liquidity
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.
It is important for the Group to have a strong profile in the international capital markets. We accomplish this by being active issuers in various markets and currencies.
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 tier 1 capital.
We usually issue subordinated debt under one of the loan programmes, but we may also issue loans with independent documentation.
In May 2009, the Group received hybrid tier one capital of DKK 26 billion from the Danish state as part of the second Danish banking package. The rest of the the Group's hybrid debt, which amounts to DKK 16.62 billion, has a step-up interest rate feature.
Last updated on 21 October 2010