The confidence crisis developed in stages over the latter part of 2007 and up to September 2008. In August 2008, Danmarks Nationalbank with a government guarantee and the Danish Contingency Association acquired Roskilde Bank on the brink of collapse. This was an important medium-sized bank, with a significant funding in foreign currencies.
This should be seen in the light of a Danish banking sector with a total deposit deficit of 600 billion kr. Danmarks Nationalbank’s primary reason for stepping in was to avoid a systemic crisis. In that situation we couldn’t accept doubts that loans to Danish banks would be honoured.