Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.

Financial stability and financial risks

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.