But there have been common traits – such as property market developments. Rapidly rising property prices, very strong housing and property investments and high lending growth for financing such investments have all contributed to the financial crisis. That has also been the case in Denmark.
The Danish banks that have succumbed to the crisis or have been close to the brink have all been characterised by very high lending growth and an almost aggressive exposure to the property sector. These factors contributed heavily to the build-up of systemic risk in the years leading up to the crisis.