Problems within one bank tend to spread to other financial institutions – or at any rate to affect their reputation. Depositors and investors may loose faith in the financial system. A domino effect is created. How does Danmarks Nationalbank actually solve its tasks in relation to financial stability?
Globalization and the banking sector It is in this overall scenario, the policy relating to the financial services, and in particular banking, must be considered. It is interesting to note that WTO negotiations on financial services have been cautious and the commitments of many larger economies in the banking sector are rather particularly limited.