Investors from all over Europe hedge against a possible Euro-collapse by placing money in Norwegian banks.
The increase in inquiries is dramatic, and from March to April, the number of requests has increased dramatically, says head of Nordea Private Banking in Norway, Torsten Østensen. The largest private bank in Norway, DNB also confirms that calls have escalated in recent months. We are talking about all kinds of clients, from central banks to corporate customers and also the traditional wealthy clients, says head of private banking DNB, Ingrid Tjønneland. The Deposit ratio in DNB has increased by five percentage points in one year - which is a significant increase. Also other Norwegian banks have marked hunger for the Norwegian krone.
We are experiencing the greatest influx from northern Europe. The Germans are afraid that the euro will fall dramatically in value. They are uncertain as to the obligations that will have to be taken on by Germany to solve the current Euro Debt crisis. It is clear that the customers want to place assets in the Norwegian krone in an account in a Norwegian bank. Norway and the Nordic countries is regarded as a safe havens, says Østensen. Both Norway and Sweden are popular due to stability of the banks and because the currencies are not linked to the Euro like in Denmark and Finland. Norway is very in high demand right now.
Chief Economist at DNB Markets, Øystein Dørum, says that the influx to Norway was only a matter of time.- We see that the deposits disappear from the banks in Southern Europe. Since interest rates are zero, I'm actually surprised that there are still deposits left in Greek banks. For Norwegian banks, more money deposits means cheaper funding than what would have been available in the international money market. The big question is still how long the money will remain in Norway.
The Norway Post
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