Danish central bank warns domestic banks against large-scale purchases of own mortgage bonds

Danish mortgage bond issuers must ensure that they are always able to sell their mortgage bonds, and they mustn’t become too dependent on their owner banks, says Danmarks Nationalbank.
Mortgage credit institutions issue bonds that are used to finance residential properties, among other things. | Photo: Jens Dresling/Ritzau Scanpix
Mortgage credit institutions issue bonds that are used to finance residential properties, among other things. | Photo: Jens Dresling/Ritzau Scanpix

Danish mortgage credit institutions must ensure that they have a broad range of buyers for their bonds and that they do not become too dependent on their owner banks purchasing their bonds, according to an analysis by Danmarks Nationalbank.

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