The target for issuance of domestic government bonds in 2017 is maintained at kr. 65 billion in order to increase the outstanding volume of new bonds and ensure continuity in issuance policy. The target for T-bills at year-end is also maintained unchanged at kr. 30 billion.

Danmarks Nationalbank's comments on the government's proposal to finance social housing with government bonds instead of mortgage-backed securities.

In its 2017 staff report for the Danish Article IV Consultation the International Monetary Fund (IMF) assesses that the Danish economy has recovered from the crisis and is approaching its potential. In order to alleviate capacity constraints and increase potential growth, the IMF recommends that economic policies focus on further raising labor supply and increasing productivity. Persistent house price increases in especially Copenhagen and Aarhus pose a concern and additional policies are needed to contain pressures.

In this paper we study what financial cycles are, what they look like in Denmark, and what their relationship is with the real economy. We show that medium term swings in house prices and credit should be used as an illustration of the financial cycle in Denmark.

Financial Stability: The largest banking groups achieved their best ever overall performance in 2016 and the banks' financial statements for the 1st quarter of 2017 also recorded sound profits. The banks' earnings are underpinned by temporary effects from very low loan impairment charges. The economic upswing, rising house prices and the continued low level of interest rates may lead to a general perception of low credit risk. This may intensify the pressure on the banks' credit standards. The large banks comply with the current capital requirements, but their capital base is lower than that of other Nordic banks. Results from Danmarks Nationalbank's accounts-based stress test show that, in a severe recession scenario, few of the systemic banks will have a small capital shortfall relative to the buffer requirements.