Denmark: Financial Sector Assessment Program‑Technical Note‑Financial Safety Net and Crisis Management Arrangements
IMF Staff Country Reports, August 12, 2020
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- Denmark: Financial Sector Assessment Program‑Technical Note‑Financial Safety Net and Crisis Management Arrangements
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Bibliographic details
- Published: August 12, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513553078.002
Executive summary
- Since the 2014 FSAP, Denmark’s financial safety net and crisis management frameworks, including bank resolution, have improved significantly.
- Major reforms enacted in response to the FSAP and the transposition of pertinent European Union (EU) rules include new legislation for resolution and deposit insurance and the introduction of a resolution framework for banks and mortgage credit institutions (MCIs).
- Two national resolution authorities have been designated.
- Resolution colleges have been established.
- Governance of the deposit insurance system (DIS) has been changed.
- Cross-border cooperation was revived through the Nordic-Baltic Stability Group (NBSG), including revising an earlier memorandum of understanding (MOU) and conducting a joint crisis simulation in 2019.
Key findings
- Legal and institutional reform:
- New legislation for resolution and deposit insurance enacted.
- Resolution framework introduced for banks and mortgage credit institutions (MCIs).
- Two national resolution authorities designated.
- Resolution colleges established.
- Deposit insurance:
- Governance of the deposit insurance system (DIS) changed.
- Cross-border cooperation and crisis preparedness:
- Nordic-Baltic Stability Group (NBSG) activity revived.
- Earlier memorandum of understanding (MOU) revised.
- Joint crisis simulation conducted in 2019.
Subjects and keywords
- Subject: Bank resolution, Bank resolution framework, Crisis management framework, Crisis resolution, Financial crises, International organization, Monetary policy
- Keywords: B. liquidity assistance, B. recovery planning, Baltics, Bank resolution, Bank resolution framework, Crisis management framework, Crisis resolution, Denmark FSAP, FSAP's finding, liquidity assistance in Resolution
Content in this bundle
- Executive Summary