Denmark: Financial System Stability Assessment-Press Release; and Statement by the Executive Director for Denmark

August 12, 2020

Preview Citation

Format: Chicago

Denmark: Financial System Stability Assessment-Press Release; and Statement by the Executive Director for Denmark, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

Much of the work of the Financial Sector Assessment Program (FSAP) was conducted prior to the COVID-19 pandemic. Given the FSAP’s focus on medium-term challenges and vulnerabilities, however, many of its findings and recommendations for strengthening policy and institutional frameworks remain pertinent. This report reflects key developments and policy changes since the FSAP mission work was completed, and includes illustrative scenarios to quantify the possible implications of the COVID-19 shock on the solvency of systemically important financial institutions (SIFIs). Prior to the COVID-19 pandemic, the Danish authorities had taken important steps to improve financial system resilience. The authorities had actively used macroprudential tools to bolster the robustness of the financial system. The supervision of the banking and insurance sectors had improved. Likewise, recent legislation has strengthened anti-money laundering and combating the financing of terrorism (AML/CFT) supervision. Major reforms such as a new bank resolution framework had also considerably improved Denmark’s financial safety net and crisis management frameworks.

Subject: Banking, Covered bonds, Financial Sector Assessment Program, Insurance companies, Stress testing

Keywords: CR, Danish authorities, Financial system, FSAP solvency stress test analysis, ISCR, Stress test endeavour, Th e DFSA

Publication Details

Pages:

79
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/250
Stock No:

1DNKEA2020001
ISBN:

9781513552965
ISSN:

1934-7685

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