Financial stability - Turbulent times call for a focus on risk management

Analysis - December 2022 - No. 14

Authors Danmarks Nationalbank
Subject Financial stability; Stress Tests; Denmarks Nationalbank´s analyses of financial stability; Banks
Type Analysis
Year 2022
Published 1 December 2022
Abstract icon The financial markets are characterised by high inflation, higher interest rates and considerable volatility. Higher interest rates, high inflation and the prevalence of risky loan types, combined with declining property prices, will lead to credit losses in banks. The weaker economic outlook underlines the need for prudence in the institutions’ capital planning.