13 June 2023
The risk outlook has been characterised by turmoil related to problems in specific banks in the United States and Europe. The turmoil lead among other things to rising funding costs for Danish and foreign financial institutions and very few new issuances of debt instruments in the markets. The episodes underline the importance of sound risk management and a robust maturity profile for the institutions’ issuances to financial stability.
The risk outlook is also characterised by higher interest rates and high inflation which is expected to weaken the resilience of some homeowners and companies. Risks are especially pronounced in the commercial real estate market and for highly indebted homeowners with interest-only loans. The Council will uncover risks related to the real estate market and consider policy actions to address these risks.
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