Nordic Banks' High Reliance On Wholesale Funding Partly Offset By Depth Of Domestic Mortgage Bond Markets Dec 07

Standard & Poors, December 2007

Abstract
Following recent turmoil in the international capital markets and the troubles experienced by some Western European banks, investors and commentators have raised concerns about the implications for other financial institutions operating in the European market. As access to funding and liquidity constraints have been the main source of trouble, the lower deposit-to-loan ratios of some of the large Swedish and Danish banks have attracted the attention of some market participants. Standard & Poor's Ratings Services considers that all major rated Nordic financial institutions have well-diversified funding strategies and conduct liquidity management in a prudent way. In our view, the size and depth of the mortgage bond markets in Denmark and Sweden together with strong domestic demand and specific regulatory features...

Companies mentioned in this report are:
- Danske Bank A/S
- Danske Bank PLC
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- SBAB Bank AB
- Swedbank Mortgage AB
- Stadshypotek AB
- Nordea Hypotek AB
- Nordea Bank AB
- Jyske Bank A/S

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Danske Bank A/S
- Danske Bank PLC
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- SBAB Bank AB
- Swedbank Mortgage AB
- Stadshypotek AB
- Nordea Hypotek AB
- Nordea Bank AB
- Jyske Bank A/S

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