Danske Bank fined 50 million NOK in Norway

Danske Bank has been fined 50 million Norwegian kroner (approximately 32 million Danish kroner) by the Financial Supervisory Authority of Norway for deliberately attempting to influence the swap rate upwards to maximize its own profit, at the expense of others. The market manipulation occurred in February 2023 when Norway issued 10-year government bonds totaling 22 billion kroner. The price of the bonds depended on the Norwegian swap rate, which Danske Bank is accused of artificially inflating. The Financial Supervisory Authority emphasized the gravity of the offense and its potential impact on market confidence. Mitigating factors include Danske Bank’s initiative in contacting regulatory authorities about the misconduct. The bank has apologized, tightened internal processes, and is conducting an in-depth review to learn from the incident. According to Carolina Crevatin Martin, head of financial markets at Danske Bank, market integrity and customer trust are fundamental, and the bank treats any threats to its integrity with utmost seriousness.