Danish Bank Profits to Fall on Funding Squeeze, Moody’s Says

Denmark’s banks face a decline in earnings as the fallout from Europe’s toughest resolution laws sends funding costs higher in the Nordic country, Moody’s Investors Service Senior Vice President Janne Thomsen said.

“We are worried about the loans to farmers, still worried about commercial real estate and we are also worried about the earnings of the banks because funding is going to be, and has shown to be, much more costly than it was in the past,” Thomsen said in a telephone interview yesterday.