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

    28 September 2020
    Real-time indicators for the 3rd quarter of 2020 point towards an improvement of the Danish economy, but the current outlook still points at a prolonged recovery.  In light of recent developments, the Council recommends that the countercyclical capital buffer remain at 0 per cent. The Council expects to recommend an increase of the buffer rate in 2021 at the earliest. The Council discussed risks in the housing and commercial real estate markets. In the Council's assessment, institutions' risk weights on commercial real estate exposures are low. The Council decided not to initiate any further measures in this area at present. In the course of 2021, the Council will revisit this topic with a view to launching further initiatives when allowed by economic conditions.



  • 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 30th meeting

28 September 2020

Real-time indicators for the 3rd quarter of 2020 point towards an improvement of the Danish economy, but the current outlook still points at a prolonged recovery.  In light of recent developments, the Council recommends that the countercyclical capital buffer remain at 0 per cent. The Council expects to recommend an increase of the buffer rate in 2021 at the earliest. The Council discussed risks in the housing and commercial real estate markets. In the Council's assessment, institutions' risk weights on commercial real estate exposures are low. The Council decided not to initiate any further measures in this area at present. In the course of 2021, the Council will revisit this topic with a view to launching further initiatives when allowed by economic conditions.

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