credit crunch has been discussed. foreign ownership without the participation of all customers and stakeholders has not prevented the stock exchange from raising capital – on the contrary. more recently and amid much media attention, danish and norwegian banks and danmarks nationalbank have sold their shares in nets. this has done away with a structure in which banks were both owners and customers of and in some cases also competitors to nets. it has eliminated a number of rather obvious opposing interests among the company ’ s owners and provided a more suitable framework for operating nets on commercial terms – which will ultimately benefit the end users of payment services : citizens and firms. vp securities is another jointly owned company that has undergone a transition from its establishment as an independent institution in 1980 over its conversion into a limited liability company in 2000 to now operating in a market where the framework conditions are changing radically. the single most important change in this area is the establishment of target2 securities – t2s – the future trans - european securities settlement platform. at the same time, the securities sector is being thoroughly harmonised. so these years european central securities depositories are changing from being national monopolies to operating on competitive terms. vp has decided to join t2s and will soon have to make a number of strategic choices as regards its position in a competitive environment. as i mentioned earlier, danmarks nationalbank is or has been a co - owner of several jointly owned companies. each shareholding has its own history. however, i would like to take this opportunity to emphasise that danmarks nationalbank ’ s role is that of an authority, including in relation to oversight of the financial infrastructure. our role is not to be a co - owner of competitive companies operating on commercial terms. for this reason we have gradually begun to withdraw from such companies. the first step was taken when we sold our shares in nets. since danmarks nationalbank had acquired those shares, pbs / nets had developed into an international enterprise competing with other companies offering advanced payment solutions in multiple countries. it was clearly no longer a company in which a central bank should have a stake. furthermore, we wanted to be beyond reproach in relation to performance of our oversight tasks, which also comprise nets. bis central bankers ’ speeches another jointly owned company in which danmarks nationalbank should at some point divest its shares is bks cash service. danmarks nationalbank and the banks established bks in order to support a secure supply of cash. we did so in response to several

has shown double - digit growth rates since 2004. the banks have strongly penetrated the market for home financing with their mortgage loans. in addition, the risk appetite of many households has increased – supported by the marketing efforts of a number of banks. business lending gathers steam later in an upswing when business enterprises invest more than their internal sources of financing can support. business lending reached double - digit growth rates at the end of 2004, and growth has now reached 20 per cent year - on year. the high rate of growth in lending is an average for all banks. there is considerable dispersion. for some banks lending increases by more than 50 per cent year - on - year. the strong growth in lending is clearly reflected in the composition of the banks'balance sheets. the difference between banks ’ lending and deposits has increased considerably in recent years. total lending now exceeds total deposits by a three - digit billion kroner amount. so the banks have become increasingly dependent on financial markets to raise money - market loans from other banks and to issue securities both nationally and internationally. the individual bank will also find it important to maintain access to these sources of financing. these sources are more sensitive than traditional deposits to changes in market conditions and the assessment of the individual bank's financial performance. this could make the banks more vulnerable. the minster of economic and business affairs is finalising a bill which will enable banks to issue covered bonds on an equal footing with the mortgage credit institutes. you may ask why it is necessary to change the danish system of financing real property via the mortgage - credit institutes. the danish mortgage credit system is a well - functioning and stable system, which has given owners of real property access to financing on capital - market terms, with a transparent cost structure. let me be blunt. this change has been imposed on us, and it does have its positive elements. it increases competition between danish financial institutions, and gives them access to operate on the same terms and conditions as foreign credit institutions. it should also be born in mind that the amendment will not entail radical changes in danish home financing overnight. many adjustments have already taken place in the last couple of years. here, i have in mind the " mortgage loans " launched by the banks with great success. seen in this perspective, covered bonds issued by banks can promote financial stability as a stable source of financing mortgage loans, thereby covering the large deposit deficit in a more satisfactory manner. when the covered bond legislation is amended, danmarks national