Negative rates fail to dent Danish bank profitability
National Bank of Denmark concerned banks may be pursuing return targets too aggressively
Despite negative interest rates, in 2015, Danish banks achieved their highest profits since the 2008 crisis. The National Bank of Denmark harbours concerns about their pursuit of returns, however.
The central bank's financial stability report, published today (June 15), warns banks are pursuing aggressive return on equity (ROE) targets – as high as 12.5% and above the levels expected by shareholders.
"An excess return of this magnitude could make it necessary for the institutions to increase
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