Liberalisation of capital flows across borders and deregulation of the financial sector in Denmark have provided considerable welfare gains. These gains are the result of lower prices and a larger product range, coupled with better opportunities for planning individual savings, consumption and investment. At the same time, financial sector productivity has increased substantially.
In fact, since 1980 productivity has grown by an average of 4–5 per cent annually in the financial sector. But in recent years lending by banks and mortgage banks relative to employment has been stagnant or shown a weak trend compared with previously. Domestic lending by banks relative to employment has even fallen.