Danish Central Bank Cuts 10% of Jobs as Crisis Staffing EndsPeter Levring
Denmark’s central bank will cut its workforce by about 10 percent as the need for extra resources created by the financial crisis fades.
The Copenhagen-based central bank will cut 55 positions through the first quarter of 2015, it said in a statement on its website today.
“The extraordinary strain on the central bank’s resources that came with the financial crisis is diminishing,” the bank said in a statement. As a consequence, “the central bank has been able to reduce its resources,” it said.
Denmark, which uses monetary policy to defend the krone’s peg to the euro, extended its lending facilities during the crisis, easing collateral requirements and giving banks access to three-year credit at its benchmark rate. Governor Lars Rohde cut the bank’s lending rate to 0.2 percent in May, matching a record low.
Danske Bank A/S, the largest Danish lender, saw profit rise 46 percent in the second quarter to a five-year high, after loan losses shrank. Shares in the bank have jumped 31 percent this year, while credit-default swaps have eased. Five-year default swaps on Danske’s senior unsecured bonds traded at 90 basis points this week, from 178 a year ago, according to data compiled by Bloomberg.
The central bank is also cutting staff as new technology systems reduce the need for employees, it said. Most of the job cuts will be frontloaded, the bank said.