Stress Tests

Danmarks Nationalbank regularly assesses the robustness of the financial sector. The results of the analyses are published in Danmarks Nationalbank's Stress Tests publication.

		Stress Tests 2nd Half, 2011 Overall, the liquidity of the Danish banks is good, but with a considerable spread between banks. The banks should continue to prepare for a situation without government guarantees. It is important that banks make sure their business models are sustainable in the long term. Danmarks Nationalbank's expansion of its credit facilities to include, inter alia, 3-year loans and of the collateral basis to include credit claims of good quality will increase the banks' access to liquidity in the short term and ease the transition when the individual government guarantees expire. The stress test of capitalisation shows that the large and medium-sized Danish banks are able to withstand economic scenarios that are considerably more adverse than the one that is expected. One bank will need additional capital. In view of the general uncertainty and the more stringent capital re­quire­ments that are underway, the banks should continue to consolidate and strengthen their capitalisation.		Date: 11-01-2012
		Stress Tests 2nd Half, 2010 The Danish financial sector as a whole is assessed to have sufficient capital and liquidity to meet the expected economic scenario. It is, however, important to have strong capital buffers as a provision against unforeseen events. The banks should continue to consolidate and strengthen their capitalisation, while also preparing for forthcoming regulation and for repaying government capital injections, if any, from 2012 onwards. At the same time, the banks should strengthen their liquidity so that they are prepared for the expiry of issuances based on individual government guarantees in 2012-13.		Date: 18-11-2010
		Stress Tests 2009, 2nd half Content:The Banks' Resilience; Top-Down Stress Test; Bottom-Up Stress Test; Stress Testing in Cooperation between Danmarks Nationalbank and Large Danish Banks		Date: 08-02-2010