Denmark: Financial System Stability Assessment

Publication Date:

December 9, 2014

Electronic Access:

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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.

Series:

Country Report No. 2014/336

Subject:

English

Publication Date:

December 9, 2014

ISBN/ISSN:

9781498353120/1934-7685

Stock No:

1DNKEA2014004

Pages:

50

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