A few banks fall short of capital requirements in stress test

Analysis - Stress test - 2nd half 2020

Authors Korsgaard, Søren; Toftegaard Grandjean Helmersen, Olivia
Subject Financial stability; Stress Tests
Type Analysis
Year 2020
Published 10 December 2020
Abstract icon A stress test of the banking sector shows that a few banks fall short of the capital buffer requirements in a severe recession scenario. However, due to the suspension of dividend payments and share buybacks, most banks are more resilient to stress than previously. For the first time, Danmarks Nationalbank uses the credit register data to allocate impairment charges more accurately among banks' corporate customers.