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 2021

  • Denmark

    Meeting of the Systemic Risk Council

    23 March 2021
    The current outlook with very loose financial conditions, increasing asset prices and prospects for a rapid recovery provides ground for risk build-up. The Council expects to recommend an increase in the countercyclical capital buffer in the middle of 2021, unless risk build-up slows down considerably or there is a new negative shock to the economy. There are also signs of risk build-up in the residential real estate market, especially in Copenhagen. The Council finds the current development increasingly concerning and expects to recommend new initiatives to the government to curb risk build-up at its next meeting.


  • Denmark

    The Systemic Risk Council encourages Danish institutions to restrict pay-outs

    18 December 2020

    On 18 December 2020, the European Systemic Risk Board (ESRB) issued a new recommendation to relevant national authorities to request financial institutions to refrain from dividend distributions, share buy-backs and variable remuneration. The recommendation applies until 30 September 2021, and amends the previous recommendation expiring at the end of 2020. The Systemic Risk Council endorses the ESRB recommendation and encour-ages Danish institutions to restrict pay-outs that erode their own funds.

     

  • 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)
     

Press release

Press release after the 32nd meeting

23 March 2021

The current outlook with very loose financial conditions, increasing asset prices and prospects for a rapid recovery provides ground for risk build-up. The Council expects to recommend an increase in the countercyclical capital buffer in the middle of 2021, unless risk build-up slows down considerably or there is a new negative shock to the economy. There are also signs of risk build-up in the residential real estate market, especially in Copenhagen. The Council finds the current development increasingly concerning and expects to recommend new initiatives to the government to curb risk build-up at its next meeting.

On 18 December 2020, the European Systemic Risk Board (ESRB) issued a new recommendation to relevant national authorities to request financial institutions to refrain from dividend distributions, share buy-backs and variable remuneration. The recommendation applies until 30 September 2021, and amends the previous recommendation expiring at the end of 2020. The Systemic Risk Council endorses the ESRB recommendation and encour-ages Danish institutions to restrict pay-outs that erode their own funds.

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