Kraks Vejviser 1935 Handelsregister

290 1934, no less than 1466 mill. Kr. were represented by the three leading banks, from which it will be seen that the country’s banking system is rather highly concentrated. By a Bank Act of 1919 the Danish banks were made subject to the special super­ vision of an appointed authority. ) Advertisements see page 292—293. Mortgage Institutions. In Denmark the granting of loans against pledge in real estate, both landed estate and town property, is largely organized through credit associations and mortgage societies. These institutions are associations of borrowers who by means of this community of interests obtain loans at lower rates with redemtion extending over long periods, as a rule about 60 years. On the other hånd the lenders acquire, by the joint responsibility obtaining within these institutions, greater security for the loan, and the bonds issued by the associations are easily realizable at officially fixed prices. . There are in Denmark 13 credit associations which in 1932 had outstanding loans to an aggregate amount of Kr. 4,184,764,000 and there were bonds in circulation to almost the whole of this amount. iThe credit {associations grant loans on first mortgages up to about 60 °/0 of the value of the property, while the mortgage societies grant Joans against second mortgages, however, in such way that the total amount of the loan on a property does not exceed 75 °/0 of the value. The mortgage societies, of which there are nine, had in 1932 out­ standing loans aggregating Kr. 452,508,000 for which sum there were bonds in circulation to an approximately equivalent amount. The annual interest paid on credit association bonds has' so far been between 3 and 5 % whereas the rate of interest paid on the bonds of the mortgage societies from 4V2 to 5°/0. The municipalities in Denmark have moreover established their own credit association which has issued bonds to an amount of about Kr, 120,000,000. The Royal Danish Mortgage Bank (Kongeriget Danmarks Hypothekbank) which has. as object the supporting and regulating of the bonds market, was established in 1906 by Act of Parliament. This bank takes up loans against issuing bonds which are secured by the basis fund of the bank Kr. 30,000,000 furnished by the State, the reserve fund of the bank and its other assets, and the loans taken up are applied amongst other purposes for acquiring credit asso­ ciation bonds. It was desired by the establishment of the bank to create a bond which out- wardly and by virtue of the eontrol and partial guarantee of the bank by the State, acquires the status of a Government security. Such a security will more readily be taken up by the public abroad than the bonds of the many different credit associations qoncerning which the requisite knowledge will often not be available abroad. The amount for which the Royal Mortgage Bank issues mortgage bonds must at no time exceed eight times the basis fund of the bank, and at present the value of the bonds- issued (per 81/3 34) amounts to Kr. 150,118,076. Advertisements see next page.