Saturday, 25 June 2011
Not long ago we reported that credit rating agencies had down graded Danish banks and places in categories which suggests that they chances of failure was more possible than otherwise. Now it has emerged that more Danes should be prepared for a large number of banks failure in the future.
The financial crisis is in fact moving into a new and critical phase due to the many indebted Danish farmers.
This is the assessment of professor and banking expert, Finn �strup from Copenhagen Business School who spoke to Danish radio on Saturday morning.
Last night a local bank on the island of Mors in Limfjord, Fjordbank Mors fell. The crash will have serious consequences for the community, but its difficulties are a symptom of an underlying condition in the Danish banking sector.
“I fear that Fjordbank Mors' crash is a new phase of financial crisis, where indebted farmers are going to pull the rug out from under a number of banks,” says Professor Finn �strup, who also said that the agricultural sector in Denmark has a total debt of about Dkr350 billion.
“Previously, we have seen banks fail at home because of construction projects - such as Amagerbanken. But now I fear that farmer’s miserable economy will cause a series of bank failures in the coming time,” says Finn �strup to Danish radio.
By Scancomark.se Team