Banks are less resilient to stress

Analysis - November 2019 - No. 24

Authors Korsgaard, Søren; Roulund, Rasmus Pank
Subject Financial stability; Stress tests reports
Type Analysis
Year 2019
Published 27 November 2019
Danmarks Nationalbank conducts a stress test of the Danish banking sector twice a year. The stress test shows that some systemic banks breach their risk-based capital requirements in a severe recession scenario. The analysis further shows that the systemic banks will have to issue new MREL in substantial amounts in order to satisfy their requirements under stress.