Competition in the Danish banking sector – Subreport: Are there signs of abnormal returns on equity in the sector?

Original title: Konkurrencen I den danske banksektor - Delrapport: Er der tegn på overnormale afkast på kapital i sektoren?

Competition in the Danish banking market has been the subject of much scrutiny over recent years. In light of this, Copenhagen Economics has been asked to assess the competition in the Danish banking market, thereby providing a solid foundation for the continued debate.

Looking at typical indicators such as price, earnings, return and efficiency, we find no indications for insufficient competition. On the contrary, the Danish banking sector seems quite competitive in comparison to international standards.

More specifically we find that:

The study is commissioned by Finans Danmark.

The contribution to the study from Copenhagen Economics comprises three subreports and one summary report: