Selected Issues Papers

Vulnerabilities and Risks in Denmark’s Nonbank Financial Institutions: Denmark

By Burcu Hacibedel, Mariusz Jarmuzek

December 24, 2024

Download PDF More Formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

Burcu Hacibedel, and Mariusz Jarmuzek. "Vulnerabilities and Risks in Denmark’s Nonbank Financial Institutions: Denmark", Selected Issues Papers 2024, 044 (2024), accessed February 11, 2025, https://0-doi-org.library.svsu.edu/10.5089/9798400296628.018

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

Denmark’s nonbank financial institutions (NBFI) sector has substantially increased in size since the Global Financial Crisis (GFC), becoming an important part of the financial system. Systemic risk associated with NBFIs have been contained but warrants close monitoring, especially regarding leverage, liquidity buffers, and interconnectedness. There are important mitigating factors that reduce systemic risk stemming from NBFIs in Denmark. Strengthening of systemic risk assessment and policy framework for NBFIs is warranted and could include developing a systemic risk assessment framework covering both banks and NBFIs and an ensuing system-wide stress testing framework.

Subject: Covered bonds, Financial institutions, Financial sector policy and analysis, Mutual funds, Nonbank financial institutions, Systemic risk, Systemic risk assessment

Keywords: Asset liability management risk, Balance sheet analysis, Covered bond bond market, Covered bonds, D. mitigating factor, Denmark, Denmark's nonbank financial institutions, Global, Mutual funds, NBFI sector, Non-bank financial institutions, Nonbank financial institutions, Systemic risk, Systemic risk assessment

Publication Details