28 September 2020
Real-time indicators for the 3rd quarter of 2020 point towards an improvement of the Danish economy, but the current outlook still points at a prolonged recovery. In light of recent developments, the Council recommends that the countercyclical capital buffer remain at 0 per cent. The Council expects to recommend an increase of the buffer rate in 2021 at the earliest. The Council discussed risks in the housing and commercial real estate markets. In the Council's assessment, institutions' risk weights on commercial real estate exposures are low. The Council decided not to initiate any further measures in this area at present. In the course of 2021, the Council will revisit this topic with a view to launching further initiatives when allowed by economic conditions.