A few of the largest banks are close to buffer requirements under stress

Analysis - Stress test - 2nd Half 2021

Authors Toftegaard Grandjean Helmersen, Olivia; Jørgensen, Mia Renee Herløv
Subject Financial stability; Stress Tests
Type Analysis
Year 2021
Published 2 December 2021
Abstract icon The stress test shows that the banks have sufficient capital to withstand a severe recession scenario, but a few of the systemic banks are close to their buffer requirements. However, the situation would be different for several of the systemic banks if their capital was on a par with their capital target on commencement of the stress test. In this case, several banks would experience significant breaches of the buffer requirements under stress.