Financial stability analyses

Danmarks Nationalbank monitors and assesses financial stability in Denmark by performing analyses of the financial sector and systemic risks. The purpose of the analyses is to assess the robustness of the financial system as a whole.

Danmarks Nationalbank’s analyses of the Danish financial sector are primarily based on large and medium-sized credit institutions accounting for the vast majority of total lending in the financial sector.

The main focus of the analyses is to assess the overall robustness of the institutions, including whether they have sufficient capital and liquidity reserves to draw on in difficult times. The analyses can thus focus on the size and composition of Danish households’ debt. The analyses can also focus on the financial situation of companies and the exposures of institutions.

Moreover, Danmarks Nationalbank prepares analyses of current financial stability themes, such as financial market liquidity, the efficiency of the institutions’ capital buffers and the effect of new regulation.

Semi-annual financial stability analysis

Danmarks Nationalbank’s assessment of financial stability is available in the semi-annual analysis ‘Financial stability’. An important element of the analysis is the assessment of whether trends in the financial markets, lending, earnings or the institutions’ capital or liquidity situation etc. may lead to vulnerabilities in the financial system.

The analysis also presents the results of Danmarks Nationalbank’s latest stress test, providing the basis for a general assessment of the robustness of credit institutions’ capital in various scenarios of considerably worse-than-expected economic development, e.g. as a result of a global crisis.

The financial stability analysis contains specific recommendations for relevant actors, which Danmarks Nationalbank continuously follows up on/keeps track of.