Banks face new requirements in the stress test

Analysis - May 2019 - No. 10

Authors Korsgaard, Søren; Roulund, Rasmus Pank
Subject Financial stability; Stress tests reports
Type Analysis
Year 2019
Published 27 May 2019
Danmarks Nationalbanks conducts a semi-annual stress test of the Danish banking sector. The stress test shows that the systemic banks satisfy their risk-based capital requirements and the leverage ratio requirement in a severe recession scenario. The analysis also looks at the banks' ability to satisfy MREL under stress and shows that the systemic banks depend on being able to continue to issue MREL-eligible instruments in order to satisfy the requirement.