Denmark: Financial System Stability Assessment

December 9, 2014

Preview Citation

Format: Chicago

Denmark: Financial System Stability Assessment, (USA: International Monetary Fund, 2014) accessed November 21, 2024

Summary

The paper discusses findings of the Financial System Stability Assessment for Denmark. The Danish authorities have taken important steps to improve financial system resilience. Financial regulation and supervision have been strengthened. A new bank resolution framework that includes bail-in of creditors has been adopted and deployed to resolve small- and medium-sized banks. An institutional framework for macroprudential policy has also been adopted. Recent legislation requires maturity extension of covered bonds in stress situations, with the aim of reducing refinancing risk in the mortgage finance system. Although stress tests suggest that financial stability risks are contained, the financial system’s large size and interconnectedness call for additional measures to further strengthen resilience.

Subject: Banking, Commercial banks, Covered bonds, Financial institutions, Financial sector policy and analysis, Insurance companies, Loans, Stress testing

Keywords: Adjustable rate, Asset price shock, Baltics, Banking system, Capital ratio, Commercial banks, Covered bonds, CR, Financial system, Global, Household assets, Insurance companies, Interest rate risk, ISCR, Loans, Stress testing

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/336
Stock No:

1DNKEA2014004
ISBN:

9781498353120
ISSN:

1934-7685

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