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DNB - DNB ASA News Story

NOK181.35 0.1  0.1%

Last Trade - 06/05/21

Sector
Financials
Size
Large Cap
Market Cap £24.39bn
Enterprise Value £56.50bn
Revenue £5.05bn
Position in Universe 30th / 1836

UPDATE 1-Nordic lenders spurn cheap dollar loans from c.banks

Thu 26th March, 2020 3:01pm
* Nordic c.banks offer 3 month dollar loans
    * Auctions undersubscribed in Sweden, Norway, Denmark

 (Adds analyst comment, detail)
    STOCKHOLM, March 26 (Reuters) - Sweden's central bank said
on Thursday it had allotted $2 billion of three-month loans to
banks in a dollar auction - a fifth of the maximum on offer - as
part of measures to dampen the effects of the coronavirus
outbreak on financial markets.
    In a coordinated auction between the three banks, Sweden's
Riksbank had said it would offer loans worth up to $10 billion,
Norway's Norges Bank loans worth up to $5 billion and Denmark's
Nationalbanken loans worth up $20 billion. 
    All three central banks saw limited demand for dollars in
the auctions, a sign dollar funding remains adequate for Nordic
banks despite recent financial turmoil due to the pandemic. 
    In Norway, banks took just $1.075 billion of the maximum
while the auction in Denmark was also undersubscribed, with
banks taking just $2.85 billion.
    The move comes after the U.S. Federal Reserve earlier this
month opened up swap lines to nine central banks, including
those of Denmark, Norway and Sweden, to tap up to a combined
total of $450 billion.  urn:newsml:reuters.com:*:nL1N2BC0LE
    In the 2008-9 financial crisis, Nordic banks were short of
dollars, a major funding currency, and authorities have been
concerned the supply could again dry up. However, banks appeared
to be well funded currently.
    "It seems like there isn't a desperate dollar shortage in
the Nordic countries, so in that way it's a good sign," said
Sydbank chief economist Soeren Kristensen.
    He said the large amounts on offer were a way for central
banks to promote confidence. 
    "It's about signaling that there is enough dollars for those
who want them," he said.
     

 (Reporting by Nordic Newsrooms; editing by Niklas Pollard)
 ((simon.c.johnson@thomsonreuters.com; +46 8 700 1045; Reuters
Messaging: simon.c.johnson.reuters.com@reuters.net))
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