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Banks Near Tipping Point as Negative Rates Draw Danish Warning

  • Danish FSA says something needs to give in current environment
  • Denmark has had negative rates longer than any other country
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After years of negative interest rates, Europe’s banks may soon need either to change their business model or shrink, according to the head of the financial watchdog in Denmark.

Speaking in an interview, Jesper Berg, the director general of the Financial Supervisory Authority in Copenhagen, suggests that the industry is close to a tipping point at which “something needs to give.”