Denmark: Financial Sector Assessment Program: Technical Note: Stress Testing

Publication Date:

March 23, 2007

Electronic Access:

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Summary:

This technical note describes the stress testing exercises carried out for the Danish commercial banking system and the insurance sector. The tests were conducted as part of the Financial Sector Assessment Program for Denmark and were developed in collaboration with the Danish Financial Supervisory Agency (DFSA) and Danmarks Nationalbank (DNB). Two approaches—bottom-up and top-down—were employed in the analysis. Results of the stress test show that under changing macroeconomic conditions, credit risk could materialize, causing a substantial deterioration in banks’ results.

Series:

Country Report No. 2007/125

Subject:

English

Publication Date:

March 23, 2007

ISBN/ISSN:

9781451811223/1934-7685

Stock No:

1DNKEA2007010

Pages:

44

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