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

Meetings in 2021 & 2022

  • Denmark

    Meeting of the Systemic Risk Council

    28 september 2021
    The current outlook of very loose financial conditions, increasing asset prices and a strong rise in economic activity provides ground for risk build-up. The Council expects to recommend an increase of the countercyclical capital buffer to 2 per cent in December 2021. The Danish Government has chosen not to follow the Council's recommendation to restrict access to new interest only mortgage loans in Denmark for now. The Government's decision implies that systemic risks related to interest only loans among highly indebted households will remain unaddressed.

    Read more here


  • Denmark

    Follow-up on recommendation from the Systemic Risk Council

    28 september 2021
    In June 2021, the Systemic Risk Council, the Council, issued a recommendation to the Danish Government to restrict Danish homeowners' access to interest only mortgage loans. The Council recommended that interest only mortgage loans are only granted to borrowers with a loan-to-value ratio below 60 per cent of the value of the home.
    The Government is required, within three months, to either comply with the recommendation or explain why the recommendation has not been complied with. If the Council considers that the actions taken do not sufficiently follow the Council's recommendation, the Council must publish its evaluation of the consequences for systemic risks.

    Read more here

  • Denmark

    Limitation of access to interest-only loans for highly indebted borrowers

    22 June 2021
    The Systemic Risk Council (the Council) recommends to the Government to restrict Danish homeowners' access to interest-only mortgage loans. The measure means that Danish homeowners cannot take out interest-only mortgage loans or mortgage-like bank loans secured upon real property if the loan-to-value ratio of their home exceeds 60 per cent. In 2020, just under half of the mortgage credit institutions' new lending to homeowners with a loan-to-value ratio above 60 per cent was with deferred amortisation. The initiative will entail that, in future, such homeowners would have to amortise on their loans or adjust the desired loan amount. The primary purpose of the initiative is to increase the resilience of homeowners – and the Danish economy – to falling house prices, increasing interest rates and other negative economic shocks that may impact the individual homeowner or Danish economy more generally.

    Read more here

  • Denmark

    Reactivation of the countercyclical capital buffer

    22 March 2021
    The Systemic Risk Council (the Council) recommends that the Minister for Industry, Business and Financial Affairs reactivate the countercyclical buffer at a rate of 1.0 per cent from 30 September 2022. The buffer was reduced from 1.0 to 0.0 per cent in March 2020 in response to covid-19. The Council finds that it is now time to rebuild the buffer.

    The Minister for Industry, Business and Financial Affairs has decided to reactivate the countercyclical capital buffer in line with the recommendation 

    Read more here


Press release

Press release after the 34th meeting

28 September 2021

The current outlook of very loose financial conditions, increasing asset prices and a strong rise in economic activity provides ground for risk build-up. The Council expects to recommend an increase of the countercyclical capital buffer to 2 per cent in December 2021. The Danish Government has chosen not to follow the Council's recommendation to restrict access to new interest only mortgage loans in Denmark for now. The Government's decision implies that systemic risks related to interest only loans among highly indebted households will remain unaddressed.

Follow-up on recommendation from the Systemic Risk Council

28 September 2021

In June 2021, the Systemic Risk Council, the Council, issued a recommendation to the Danish Government to restrict Danish homeowners' access to interest only mortgage loans. The Council recommended that interest only mortgage loans are only granted to borrowers with a loan-to-value ratio below 60 per cent of the value of the home.
The Government is required, within three months, to either comply with the recommendation or explain why the recommendation has not been complied with. If the Council considers that the actions taken do not sufficiently follow the Council's recommendation, the Council must publish its evaluation of the consequences for systemic risks.

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