DENMARK - Bank Deposit Will Cost Money

Arno Froese

Wealthy Danes might soon decide to put their cash somewhere besides their bank, if they’re not willing to pay the bank to hold their money for them.

Denmark’s economy is healthy and employment at record highs. As prosperity spreads, private savings are growing, reaching a record 936 billion Danish crowns, or 208,000 crowns ($30,676) per adult, in October, according to the central bank.

Rates are in negative territory because Denmark usually sets monetary policy in lock-step with the European Central Bank, to keep the crown pegged to the euro. The ECB began slashing rates in 2012, as it grappled with the euro zone’s debt crisis, and in 2014 cut them below zero.

A survey of wealthy individuals indicated that only 8% of respondents would accept paying interest rates on their private deposits. The remaining 92% want to pull their money out of deposits and put it elsewhere.

“Danes seem to like the security of having large amounts of money in the bank,” said Nykredit analyst Mira Lie Nielsen. “The growing focus on the consequences of excess consumption for the climate and the environment may have begun to make Danes more reluctant to spend.”

But for now, Danish homeowners are mostly taking advantage of ultra-low interest rates to re-finance mortgages and other loans. While European bank earnings have suffered from negative rates, the mortgage activity has partly shielded Danish banks from the impact of negative rates., 27 November 2019

Arno's commentary

Denmark is counted as one of the super-rich countries. Their population stands at 5.8 million people, and life expectancy is 81 years. What Denmark has in common with all rich and successful countries, is their import/export balance sheet; while imports stand at $94.9 billion, exports are listed at $113.6 billion.

Now the problem: most European countries attempt to entice citizens to spend more money. Otherwise, as is the case, they would have to pay the bank to keep their wealth. Also, Denmark is listed in virtually all international statistics among the first five places in the world for most peaceful counties.

The most important question is the spiritual one. Religiously, they are divided, with 75% Lutheran, 5.5% Muslim, and about 19.8% falling into the category of Orthodox Christian, Jewish, Baptist, Buddhist, Mormon, Pentecostal, and non-denominational.

What does the Bible say about money? “Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also” (Matthew 6:19-21).

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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