The exposures and losses were, however, relatively small in size. Lending by Danish banks has increased substantially in recent years, and some have seen growth rates in excess of 30 per cent. Earnings have been high and losses low. Particularly mortgage loans to homeowners have grown significantly. Growth in lending has been so strong that a large deposit-loan gap of more than kr.
400 billion has accumulated. This is the amount by which the banks' lending exceeds the deposits from customers. Consequently, the Danish banks have to rely on the financial and money markets as sources of financing. Developments abroad over the summer have shown that it can be risky to base one's business on such financing.