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.

Financial stability and financial risks

Financial stability 2012

Generally, the large banks strengthened their capital bases in 2011, while several medium-sized banks reduced their excess capital adequacy. For many banks, a key task in the coming years will be to prepare for the forthcoming strengthened capital requirements. Higher profits are an important element in this context. Danmarks Nationalbank's stress test model provides a basis for assessing the capitalisation of the 13 largest Danish banks in various macroeconomic scenarios. The stress test shows that the largest banks are robust. Among the smaller banks included in the stress test, a few will need to strengthen their capitalisation. The assessment is that any problems among small banks can be solved within the existing framework for mergers and resolution. Most of the small and medium-sized banks with customer funding gaps at the start of the crisis have narrowed these gaps in recent years or turned them into surpluses. It is important for the small and medium-sized banks to continue their adjustment to a business model that is viable in the longer run. The opportunities to borrow from Danmarks Nationalbank have been increased, which will provide flexibility in this respect.