National Bank of Denmark
Situated in Copenhagen Denmark, the National Bank of Denmark
(otherwise known as Danmarks Nationalbank or just Nationalbanken) is, as the name suggests, the central bank of Denmark. Although Denmark is now a member of the European Union, it is one of the few central banks
not to employ the Euro currency, preferring to continue to issue its Danish Krone notes and coins. It is however still a member of the European System of Central Banks
and works alongside other European countries in order to provide synergetic financial stability across Denmark and Europe through the banking sector.
By the ruling of King Frederick VI, Denmark’s national banking system was first put in to action on August 1, 1818 as a private institution and was given sole responsibility for issuing currency
and controlling the money supply
. By 1914 the bank had become governmentally controlled, before becoming fully independent in 1936 as a traditional central bank.
Unlike other European countries that are rather limited in regards to monetary policy
because of the Euro, the National Bank of Denmark has full responsibility for its own monetary policy, with their main aim being to ensure the stability of their Krone currency. They do however look for a good conversion with the Euro to help promote trade.
Structurally the banking system employs a Chairman of the Board by Royal appointment, followed by two other governors and then a board of directors. The Chairman (Nils Bernstein, as of 2005) is active in European matters and joins meetings with other European member countries, although policies on the Euro do not overtly apply to Denmark.
The National Bank of Denmark’s main priorities include playing a key role in overseeing the country’s payment systems, to promote the efficient and effective use of the commercial banking system, to keep prices stable, to ensure the safety of payments and the system as a whole and to keep stability in all areas.
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