Frontpage News 2014 Record-high accoun...

Record-high account transfers

13 January 2014

Money was transferred between bank accounts with a historically high amount in December month. This is good news for the Danish economy, estimates Bankers Association Chief Economist Niels Storm Stenbæk. 
 
A total of DKK 364bn was transferred in December 2013. For comparison, the amount was DKK 310bn in December 2012.

"The increase in account transfers is good news for the Danish economy because it reflects increased financial activity between households, busi-nesses and the public," explains the Danish Bankers Association’s Chief Economist Niels Storm Stenbæk and elaborates:
 
"There is a tradition of large fluctuations in monthly figures, and at the same time, the figure is under the influence of prices and seasons. Adjusting for these factors, the level is still at its highest since the crisis. December's high value is of course positive, but what matters is more the upward trend that is reflected in the figures." 

 

Figure 1. Account-to-account transfers in Denmark, 2012-2013
Source: The Danish Bankers Association’s transaction statistics
Note: Account-to-account transfers denote the volume of money transferred between accounts through the clearing in Nets. Transfers between accounts in the same bank are therefore not included. The figures are estimated in current prices are not seasonally adjusted.
 
 

A good indicator of the overall economy

Account transfers have historically been found to contain valuable infor-mation about the current cyclical state of the economy. An even better picture of the current economic situation is, however, a combination of the various transaction data generated in the Danish Bankers Association’s payment indicator.
 
Where Dankort spending for example reveals the trend in consumer spending, the account transfers a give an overall idea of other financial activities such as commerce between companies.
 
"Much of the trade that takes place between companies happens via account transfers, and the total volume of account transfers may therefore reflect a higher willingness to invest or stockpiling," says Niels Storm Stenbæk.
 
According to Niels Storm Stenbæk, the record high figures also reflect structural changes in the Danish payment habits:
 
"The upward trend is also a consequence of the structural changes occurring in the use of payment instruments, where the Danes increasingly use digital solutions like online banking," says Niels Storm Stenbæk.

 
Figure 2. Account-to-account transfers and the development of GDP, con-stant prices and seasonally adjusted
 
Source: The Danish Bankers Association’s transaction statistics and Statistics Denmark
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