A few banks have capital shortfall in severe recession scenario

Analysis – November 2017 – No. 22

Authors Korsgaard, Søren
Subject Financial stability; Stress tests reports
Type Analysis
Year 2017
Published 29 November 2017
Abstract icon Danmarks Nationalbank's semiannual stress test of the banking sector shows that the largest banks are close to, and in some cases tap into, their buffer requirements in a severe recession scenario. The stress test focuses on market risk and the losses banks suffer due to falling stock prices, changes in interest rates and increasing credit spreads.