Jyske Bank has decided to raise its interest rate on variable-rate loans by up to 0.25%. The increase will take effect as of 1 July 2011. Moreover, a similar increase of the margin on money-market products, foreign-currency loans and foreign-currency overdraft facilities will be announced.
Jørgen Lund Pedersen, Director of Retail and Commercial Banking, Denmark, gives as reason for these increases the rising funding expenses incurred by the financial sector, including Jyske Bank, as a consequence of the general turmoil in the financial markets and the turmoil following the most recent bank failures in Denmark.
Moreover, it should be pointed out that due to the failures of Amagerbanken and Fjordbank Mors, etc., Jyske Bank will incur expenses for the Danish Deposit Guarantee Fund in the amount of almost DKK 300m in the first half of 2011.
