Norway’s DNB kicked off the Nordic reporting season today (Thursday), posting second quarter pre-tax profits that beat consensus expectations as the bank benefitted from raising lending rates and improved deposit margins.

Gjensidige Bank has become more strategically important to its parent, Norwegian insurance group Gjensidige, according to Standard & Poor’s, which upgraded the bank, subsidiary Gjensidige Bank Boligkreditt, and the latter’s covered bonds on Friday.

Proposals that include the possible break-up of universal banks into separate retail and investment banking entities were rejected by the Swedish authorities in their response to the Liikanen Report on Tuesday.

Covered bonds should be exempt from a proposed large exposure limit under Basel III, especially in local currency areas such as Denmark and Sweden, industry bodies argued in response to a Basel consultation ending last Friday (28 June).