Minister plans actions against banks amid high profits

Danish banks are enjoying profitable times with high interest rates leading to significant returns, but Danish Business Minister Morten Bødskov suggests this comes at customers’ expense. He announced the government’s intention to introduce new regulatory measures to improve transparency and competition in the financial sector, ensuring better customer products. Although Bødskov did not specify the exact political actions or timeline, he noted that the banks’ profits are tied to the interest rates paid by customers. The difference between deposit and loan rates has increased, allowing banks to profit from high customer rates. For example, Danske Bank reported a record profit of 21.3 billion kroner, with the six major Danish banks totaling 45.6 billion kroner in profits for 2023. Customers, however, still face high interest rates. Politician Pelle Dragsted of the Unity List praised the minister’s acknowledgment but expressed disappointment at the lack of concrete measures being disclosed.