Should you take the money out of the bank?

Turbulent times in international politics can quickly set in the stomach.

In recent months, statements from US President Donald Trump about a desire to take over Greenland have sparked speculation – also among ordinary bank customers. According to the banks, some citizens have therefore asked whether their savings are safe, and whether in uncertain times they should withdraw cash and store it at home.

AG has asked the Bank of Greenland and Bankivik how customers should behave.

The banks urge calm

The answer from both banks is clear: There is no reason to fear for your money.

- Customers' money is safe with us – even in uncertain times, says Private Client Director Pia Holm Jensen from Bankivik.

She points out that customers' deposits are automatically covered by the deposit guarantee via the Guarantee Fund, and that pension funds are fully covered – regardless of the amount. The same applies to securities as a rule.

This assessment is shared by the Bank of Greenland, where CEO Martin Kviesgaard emphasizes that the banks in Greenland are robust and subject to stricter requirements.

- Both we and Bankivik are SIFI institutions and thus systemically important. This means that we are subject to special requirements precisely in order to be able to withstand crises, he says.

Cash at home poses greater risk

Although there is talk of "prepping" and withdrawing cash, the banks advise against storing large amounts at home.

- Cash loses purchasing power over time, and you miss out on interest and returns. At the same time, there is a real risk of theft, fire and other incidents, the two banks say in unison.

However, both banks recommend, in line with the Naalakkersuisuts emergency advice, that you have a small amount of cash at home – around 1,000 kroner in coins and small notes – as well as physical payment cards and access to online banking and MobilePay.

- With these precautions, you are well prepared if payment solutions temporarily do not work as normal, it says.

Fear is decreasing

At the Bank of Greenland, we experience that the unrest among the population is approaching an end.

- The crisis in January naturally caused fear among some, and that is quite natural. But it is also clear that we are now getting our everyday life back, says Martin Kviesgaard.

He also emphasizes that the vast majority of customers are fully covered by the deposit guarantee.

- Approximately 98 percent of our customers with deposits are fully covered, and we currently have the highest deposit level ever.

The banks' advice: Take the dialogue

If you as a customer feel uneasy, the banks' advice is not to act in panic, but to get in touch. Pia Holm Jensen and Martin Kviesgaard both state that their staff are always ready to answer questions and provide advice, so that each bank customer can feel at ease about their financial situation.