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

Stress tests, 2nd half 2011

Overall, the liquidity of the Danish banks is good, but with a considerable spread between banks. The banks should continue to prepare for a situation without government guarantees. It is important that banks make sure their business models are sustainable in the long term. Danmarks Nationalbank's expansion of its credit facilities to include, inter alia, 3-year loans and of the collateral basis to include credit claims of good quality will increase the banks' access to liquidity in the short term and ease the transition when the individual government guarantees expire. The stress test of capitalisation shows that the large and medium-sized Danish banks are able to withstand economic scenarios that are considerably more adverse than the one that is expected. One bank will need additional capital. In view of the general uncertainty and the more stringent capital re­quire­ments that are underway, the banks should continue to consolidate and strengthen their capitalisation.