Denmark : Financial System Stability Assessment-Press Release; and Statement by the Executive Director for Denmark

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

August 12, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Much of the work of the Financial Sector Assessment Program (FSAP) was conducted prior to the COVID-19 pandemic. Given the FSAP’s focus on medium-term challenges and vulnerabilities, however, many of its findings and recommendations for strengthening policy and institutional frameworks remain pertinent. This report reflects key developments and policy changes since the FSAP mission work was completed, and includes illustrative scenarios to quantify the possible implications of the COVID-19 shock on the solvency of systemically important financial institutions (SIFIs). Prior to the COVID-19 pandemic, the Danish authorities had taken important steps to improve financial system resilience. The authorities had actively used macroprudential tools to bolster the robustness of the financial system. The supervision of the banking and insurance sectors had improved. Likewise, recent legislation has strengthened anti-money laundering and combating the financing of terrorism (AML/CFT) supervision. Major reforms such as a new bank resolution framework had also considerably improved Denmark’s financial safety net and crisis management frameworks.

Series:

Country Report No. 2020/250

Subject:

Frequency:

regular

English

Publication Date:

August 12, 2020

ISBN/ISSN:

9781513552965/1934-7685

Stock No:

1DNKEA2020001

Format:

Paper

Pages:

79

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