Danish Lenders Risk Losses From US Tariffs, Central Bank Warns

An escalation of the US trade war would pose a “substantial risk” of losses for Danish banks, which are heavily exposed to export-driven industries, the Nordic country’s central bank warned.

Danish lenders are particularly vulnerable to further trade tensions through their exposure to manufacturing firms as a large share of industrial exports goes to the US either directly or indirectly, Nationalbanken said in a financial stability report released Tuesday. The situation could also worsen rapidly if US tariffs reduce demand across Denmark’s trading partners in the European Union, the regulator added.