Several banks are stepping on the accelerator

News - November 2017 - No. 11

Authors Danmarks Nationalbank
Subject Financial stability; Financial risks; Financial regulation; Macroprudential policy; Denmarks Nationalbank´s analyses of financial stability
Type News
Year 2017
Published 29 November 2017
The profits of banks and mortgage banks are increasing. This has contributed to a boost in optimism in the financial sector and an increase in the institutions' risk appetite, which is reflected in easing of credit standards. Several credit institutions have increased lending to cyclical industries. The aggregate trend in bank lending in combination with other factors indicates that the risks are building up in the financial system. Danmarks Nationalbank assesses that the conditions for activating the countercyclical capital buffer are in place.