The annual report Financial stability assesses financial stability in Denmark, with emphasis on financial institutions, markets and payment systems. The report consists of two parts. The first part starts with an analysis of the development in the financial sector, with emphasis on the banking institutions. This is followed by a chapter on the development in the corporate sector and the households. Next the developments in the financial markets are reviewed and finally follow a chapter about the framework for Financial stability. The second part of the report consists of topical issues of relevance to Financial stability. This year it contains tree issues: Advanced approaches to calculation of capital requirements under Basel II, Banks' liquidity and finally protection of settlement in Danish payment systems.