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.

Meetings in 2020

  • Denmark

    Meeting of the Systemic Risk Council

    23 June 2020
    The covid-19 outbreak and the measures taken to contain the virus have caused a sudden, rapid decline in economic activity, both internationally and in Denmark. The full extent of the negative impact remains uncertain, and the economic downturn could be deep and prolonged. The release of the countercyclical capital buffer gives institutions more scope to maintain lending. The Council does not expect to recommend an increase of the buffer rate until 2021 at the earliest.


     

  • Denmark

    The minister releases the countercyclical capital buffer

    12 March 2020
    As a reaction to covid-19, the Minister for Industry, Business and Financial Affairs decided on 12 March 2020 to reduce the countercyclical capital buffer rate to 0 per cent with immediate effect.

    Read more here (Danish only)


     
     

  • Faroe Islands

    Recommendation: Temporary reduction of capital requirements in the Faroe Islands

    18 March 2020
    As a reaction to the uncertainty and the challenges posed by the current covid-19 outbreak, the Council recommends the Minister for Industry, Business and Financial Affairs to temporarily reduce the systemic risk buffer in the Faroe Islands to 2 per cent. The government has followed the Council's recommendation to suspend the latest increase of the systemic risk buffer in the Faroe Islands from 2 per cent to 3 per cent, which entered into force on 1 January 2020.

    Read the minister's response here. (Danish only)

      

  • Faroe Islands

    Recommendation: Changing the criteria for SIFI designation in the Faroe Islands

    4 March 2020
    The Systemic Risk Council, the Council, recommends to the government that a lower limit be introduced for when a credit institution in the Faroe Islands is designated as a systemically important financial institution.

    4 June 2020
    The Minister for Industry, Business and Financial Affairs has decided to follow the recommendation from the Council.

    Read the minister's response here (Danish only)

Press release

Meeting of the Systemic Risk Council

23 June 2020

The covid-19 outbreak and the measures taken to contain the virus have caused a sudden, rapid decline in economic activity, both internationally and in Denmark. The full extent of the negative impact remains uncertain, and the economic downturn could be deep and prolonged. The release of the countercyclical capital buffer gives institutions more scope to maintain lending. The Council does not expect to recommend an increase of the buffer rate until 2021 at the earliest.

Recommendation

Temporary reduction of capital requirements in the Faroe Islands

18 March 2020

The Systemic Risk Council, the Council, recommends to the Minister for Industry, Business and Financial Affairs that the general systemic risk buffer in the Faroe Islands be temporarily reduced to 2 per cent. The Council’s recommendation is in response to the uncertainty and challenges associated with the spread of covid-19.

Press release

Press release on changing the criteria for SIFI designation in the Faroe Islands

4 March 2020

The Systemic Risk Council, the Council, recommends to the government that a lower limit be introduced for when a bank in the Faroe Islands is designated as a systemically important financial institution. Systemically important financial institutions (SIFIs) are today designated on the basis of a number of indicators measuring the bank’s size in relation to the Faroese economy and banking sector.

Analysis

Analysis of requirements for Faroese banks

4 March 2020

The Danish Systemic Risk Council, in cooperation with Føroya Váðaráð, the Faroese Systemic Risk Council, has prepared an analysis of requirements for the Faroese banks.

The Systemic Risk Council on Twitter

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