Lower growth may cause bank earnings to fall

News - May 2019 - No. 5

Authors Danmarks Nationalbank
Subject Financial stability; Financial risks; Financial regulation; Macroprudential policy; Denmarks Nationalbank´s analyses of financial stability
Type News
Year 2019
Published 27 May 2019
Economic growth continues in Denmark and many other parts of the world, but the pace is set to slowdown in the coming years. A substantial dampening of economic growth would lead to higher loan impairment charges and consequently lower earnings in the banks in the future, Danmarks Nationalbank points out in its semi-annual analysis of financial stability in Denmark.