Financial Stability - Lower excess capital adequacy for the banks

Analysis - November 2019 - No. 25

Authors Danmarks Nationalbank
Subject Financial stability; Financial risks; Financial regulation; Macroprudential policy; Denmarks Nationalbank´s analyses of financial stability
Type Analysis
Year 2019
Published 27 November 2019
The largest credit institutions’ results remain high, underpinned by low loan impairment charges and income from mortgage loan refinancing. Several institutions have launched initiatives aimed at securing future earnings. The largest credit institutions have reduced excess capital adequacy, and for a few it is low. The institutions should reconsider their capital targets to ensure an appropriate distance between capitalisation and capital requirements.