In some areas of Denmark, house prices are still falling and turnover is low. There is also an overrepresentation of enforced sales. The population is shrinking in these areas and GDP growth is low, and there are no immediate signs that this will change. The regional problems in the housing market cannot be solved by the mortgage credit system.
Fundamental investor confidence in the creditworthiness and liquidity of the bonds is at the core of the Danish mortgage credit system. It is essential to preserve this confidence and thus the safety of the system. The Danish mortgage credit system plays a pivotal role in lending in Denmark, and mortgage bonds are important instruments in the banks’ liquidity management.