The Systemic Risk Council

The work of the Council seeks to prevent and reduce systemic financial risks that may put the economic development under stress.

Read more about our work

Press release

Press release after 45th meeting

27 June 2024

Geopolitical risks dominate the risk outlook and geopolitical shocks can lead to growth being lower than expected. In the commercial real estate market, experience shows that periods such as recent years with higher interest rates and required rates of return on investment return requirements lead to decreasing property values, which reduces the value of the collateral that real estate companies pledge as security for their loans.  

 

Recommendation

Increase in the systemic risk buffer rate of the Faroe Islands

27 June 2024 

The Systemic Risk Council recommends to the Minister for Industry, Business and Financial Affairs that the systemic risk buffer rate for exposures in the Faroe Islands be increased to 3 per cent from 1 July 2025.

Press release

Follow-up on the decision by the Minister for Industry, Business and Financial Affairs to activate a sector-specific systemic risk buffer for corporate exposures to real estate companies

7 June 2024

The Minister for Industry, Business and Financial Affairs published the government’s decision to comply with the Council’s recommendation to activate a sector-specific buffer for exposures to real estate companies at a rate of 7 per cent on 26 April 2024. The Council finds that the activation of a sector-specific systemic risk buffer by the Minister for Industry, Business and Financial Affairs will address the systemic risks identified sufficiently. 

 

The Systemic Risk Council on X

Meetings in 2024

Members of the Council

By law, the Council consists of the following members:

  • Two representatives from Danmarks Nationalbank, one being the chairman of the Board of Governors of Danmarks Nationalbank and chairing the Council.
  • Two representatives from the Danish Financial Supervisory Authority.
  • One representative from each of the following economic ministries: Ministry of Industry, Business and Financial Affairs, Ministry for Economic Affairs and the Interior and Ministry of Finance.
  • Three independent experts with knowledge of financial matters.
Picture of the members of the Council