Last – but not least – it was equally important that the government, at short notice in early October 2008, decided to issue a guarantee for all deposits with and loans to Danish banks. It is impossible to say exactly what the impact of this measure, known as Bank Rescue Package I, was.
Non-residents withdrew krone deposits totalling DKK 70 billion from Danish banks in October 2008. This package contributed strongly to keeping capital outflows during the crisis at a manageable level. Timing and determination were essential elements in terms of ensuring confidence in Danish banks.