Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Uncertain times call for resilience and preparedness
Banks continue to report high earnings and few losses on their customers. This is partly due to the resilience of the Danish economy despite global uncertainty and because the resilience of banks is supported by the financial regulation introduced after the financial crisis. Currently, the sharp increases in house prices in the Capital Region warrant attention. However, growth in housing lending remains moderate, and lending rules and sound credit principles in banks are crucial in order to prevent households from over-indebtedness. Cyberattacks remain one of the most significant risks to financial stability. The threat landscape is complex, and hybrid threats increase the risk of operational incidents that may affect critical infrastructure.
Key messages
Why is it important?
Financial stability is a prerequisite for the financial sector to fulfil its socially critical tasks. Even during a crisis, customers should still be able to borrow money for sound and creditworthy projects and be able to make and receive payments. This requires the financial sector to be resilient enough to withstand economic and financial crises, helping to ensure Denmark has a resilient economy.
Danmarks Nationalbank publishes its Financial stability analysis biannually, which summarises the bank’s assessments of and recommendations for financial stability in Denmark. The analysis sheds light on whether vulnerabilities in the financial system can arise due to the lending, liquidity management or capital planning of credit institutions. It also presents the results of Danmarks Nationalbank’s biannual stress test, which helps to assess whether the largest credit institutions have sufficient capital to handle a sharp economic downturn. The analysis can also cover other issues relevant to financial stability. Examples include pension and life insurance companies, working with cyber risks, digitalisation or the impact of climate change on the financial sector.
Main chart
Momentum is strong in the housing market in the Capital Region, but credit growth remains moderate
Note:
Annual growth in house prices and nominal mortgage credit to households from Q2 2024 to Q2 2025. House prices at municipal level are an average of the price of owner-occupied flats and single-family houses, weighted by their respective share of the housing stock. Dots are proportional to the size of outstanding loans in Q2 2025. Light pink dots represent municipalities in the Capital Region. The chart includes only municipalities with at least 150 homes sold in Q2 2025.
Source:
Own calculations based on Danmarks Nationalbank, Finance Denmark and Statistics Denmark.