Danmarks Nationalbank
Encyclopedia
Danmarks Nationalbank is the central bank
of the Kingdom of Denmark
. It is a non-eurozone
member of the European System of Central Banks
(ESCB). The bank issues the Danish currency, the krone
.
The bank was established on 1 August 1818 by King Frederick VI of Denmark
. The private bank was given a 90-year monopoly on currency issue, which was extended in 1907 out to 1938. In 1914, the National Bank became the sole banker for the Danish government. The bank became fully independent of the government in 1936.
The building was designed by Arne Jacobsen
in collaboration with Hans Dissing and Otto Weitling. After Jacobsen's death, his office, renamed Dissing+Weitling, has brought the construction to completion.
The objective of Danmarks Nationalbank as an independent and credible institution is to ensure a stable krone
. The Board of Governors holds full responsibility for the monetary policy
. The Board of Governors consists of three members. The Chairman of the Board of Governors is Governor by Royal Appointment. The two other Governors are appointed by the Board of Directors. Nils Bernstein became chairman in 2005.
Danmarks Nationalbank undertakes all functions related to the management of the Danish central-government debt. The division of responsibility is set out in an agreement between the Ministry of Finance of Denmark
and Danmarks Nationalbank.
showing the insignia of Denmark, Schleswig
, and Holstein
. The two latter provinces were lost in the 1864 Second War of Schleswig
, and the bank is the only official Danish institution still using this insignia. Since the late 19th century, coins minted by the bank carry a heart
-shaped mint mark
. Before this time, the Mint used a mark showing the royal crown
.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of the Kingdom of Denmark
Kingdom of Denmark
The Kingdom of Denmark or the Danish Realm , is a constitutional monarchy and sovereign state consisting of Denmark proper in northern Europe and two autonomous constituent countries, the Faroe Islands in the North Atlantic and Greenland in North America. Denmark is the hegemonial part, where the...
. It is a non-eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
member of the European System of Central Banks
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
(ESCB). The bank issues the Danish currency, the krone
Danish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
.
The bank was established on 1 August 1818 by King Frederick VI of Denmark
Frederick VI of Denmark
Frederick VI reigned as King of Denmark , and as king of Norway .-Regent of Denmark:Frederick's parents were King Christian VII and Caroline Matilda of Wales...
. The private bank was given a 90-year monopoly on currency issue, which was extended in 1907 out to 1938. In 1914, the National Bank became the sole banker for the Danish government. The bank became fully independent of the government in 1936.
The building was designed by Arne Jacobsen
Arne Jacobsen
Arne Emil Jacobsen, usually known as Arne Jacobsen, was a Danish architect and designer. He is remembered for contributing so much to architectural Functionalism as well as for the worldwide success he enjoyed with simple but effective chair designs.-Early life and education:Arne Jacobsen was born...
in collaboration with Hans Dissing and Otto Weitling. After Jacobsen's death, his office, renamed Dissing+Weitling, has brought the construction to completion.
The objective of Danmarks Nationalbank as an independent and credible institution is to ensure a stable krone
Danish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
. The Board of Governors holds full responsibility for the monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
. The Board of Governors consists of three members. The Chairman of the Board of Governors is Governor by Royal Appointment. The two other Governors are appointed by the Board of Directors. Nils Bernstein became chairman in 2005.
Danmarks Nationalbank undertakes all functions related to the management of the Danish central-government debt. The division of responsibility is set out in an agreement between the Ministry of Finance of Denmark
Ministry of Finance of Denmark
The Ministry of Finance of Denmark is a ministry in the Government of Denmark. Among other things, it is in charge of the government budget , paying government employees and improving efficiency in government administration...
and Danmarks Nationalbank.
Logo
The official logo of the bank is a nineteenth century version of Denmark's coat of armsCoat of arms of Denmark
The royal coat of arms is more complex. The shield is quartered by a silver cross fimbriated in red, derived from the Danish flag, the Dannebrog. The first and fourth quarters represent Denmark by three crowned lions passant accompanied by nine hearts; the second quarter contains two lions passant...
showing the insignia of Denmark, Schleswig
Schleswig
Schleswig or South Jutland is a region covering the area about 60 km north and 70 km south of the border between Germany and Denmark; the territory has been divided between the two countries since 1920, with Northern Schleswig in Denmark and Southern Schleswig in Germany...
, and Holstein
Holstein
Holstein is the region between the rivers Elbe and Eider. It is part of Schleswig-Holstein, the northernmost state of Germany....
. The two latter provinces were lost in the 1864 Second War of Schleswig
Second War of Schleswig
The Second Schleswig War was the second military conflict as a result of the Schleswig-Holstein Question. It began on 1 February 1864, when Prussian forces crossed the border into Schleswig.Denmark fought Prussia and Austria...
, and the bank is the only official Danish institution still using this insignia. Since the late 19th century, coins minted by the bank carry a heart
Heart (symbol)
The heart has long been used as a symbol to refer to the spiritual, emotional, moral, and in the past, also intellectual core of a human being...
-shaped mint mark
Mint mark
A mint mark is an inscription on a coin indicating the mint where the coin was produced.-History:Mint marks were first developed to locate a problem. If a coin was underweight, or overweight, the mint mark would immediately tell where the coin was minted, and the problem could be located and fixed...
. Before this time, the Mint used a mark showing the royal crown
Crown of Christian V
The crown of King Christian V of Denmark was the crown used at the coronation of all of Denmark's absolutist kings, see Absolute monarchy. While the reign of such monarchs ended in 1840, the crown is still used during a Danish king's castrum doloris, the last time in 1972.Used by the kings from...
.