And, finally, it is correct to say that the financial markets had moved away from their original role as an intermediary and thus as a service provider for the real sector. False incentive structures in compensation performed their part in all these undesirable developments. Explaining the crisis only in terms of “out of control” financial markets falls short of the mark, however.
On 27 October 2008, Danmarks Nationalbank and the ECB established an equivalent swap line for 12 billion euro. Although this limit was not reached, the security of Danish banks in relation to euro funding was undoubtedly boosted. The swap facility has been very helpful in addressing the banks’ liquidity needs.