kraks vejviser 1939 handelsvejviser

254 1938, no less than 1560 mili. Kr. were represented by the three leading banks, from which it will be seen that the country’s banking system is rather highly concentrated. By Bank Acts of 1919 and 1930 the Danish banks were made subject to the special supervision of an appointed authority. Advertisements see page 256 - 257. Mortgage Institutions. In Denmark the granting of' loans against pledge in real estate, both landed estate and town property, is largely organized through credit associations and mortgage societies. These institutions are associations of borrowers who by means of this community of interests obtain loans at lower rates with redemption extending over long periods, as a rule about 60 years. On the other hånd the lenders acquire, by the joint responsibility obtaining within these institutions, greater security for the loan, and the bonds issued by the associations are easily realizable at officially fixed prices. There are in Denmark 13 credit associations which in 1937 had outstanding loans to an aggregate amount of Kr. 4,786,897,000 and there were bonds in circulation to almost the whole of this amount. The credit associations grant loans on first mortgages up to about 60 °/ 0 of the value of the property, while the mortgage [societies grant loans against second mortgages, however, in such way that the total amount of the loan on a property does not exceed 75 % the value. The mortgage societies, of which 85 there are 8, had in 1937 out­ standing loans aggregating Kr. 479,245,000 for which sum there were bonds in circulation to an approximately equivalent amount. The annual interest paid on credit association bonds has so far been between 3 ani 5 °/ 0 whereas the rate of interest paid on the bonds of the mortgage societies from 4^2 5°/ 0 . The municipalities in Denmark have moreover established their own credit association, which in 1937 had outstanding loans to an aggregate amount of Kr. 124,968,000 and had bonds in circulation to almost the whole of this amount. The Mortgage Bank of the Kingdom of Denmark (Kongeriget Danmarks Hypothekbank) which has as object the supporting and regulating of the bonds market, was established in 1906 by Act of Parliament. This bank takes up loans against issuing bonds which are secured by the basis fund of the bank Kr. 30,000,000 furnished by the State, the reserve fund of the bank and its other assets, and the loans taken up are applied amongst other purposes for acquiring credit asso­ ciation bonds. It was desired by the establishment of the bank to create a bond which out- wardly and by virtue of the control and partial guarantee of the bank by the State, acquires the status of a Government security. Such a security will more readily be taken up by the public abroad than the bonds of the many different credit associations concerning which the requisite knowledge will often not be available abroad. The total amount outstanding of bonds issued by the Mortgage Bank must at no time exceed eight times the basis found of the bank. Per March 31. 1938 the total amount outstanding of bonds issued was Kr. 187,947,604. Advertisements see next page.