The work of the Council seeks to prevent and reduce systemic financial risks that may put the economic development under stress.

Press release after 51. meeting

8 December 2025

Geopolitical tensions and uncertainty continue to shape the risk outlook for the financial sector in Denmark. Nevertheless, risk appetite in global financial markets remains high. Domestically, house prices in and around Copenhagen have risen significantly over the past year. Credit growth has so far remained moderate, but the housing burden in Copenhagen is at high levels, and expectations of capital gains as well as fear of higher prices are increasingly influencing first-time buyers’ housing considerations. These developments underline the importance of maintaining sound credit standards in banks, supported by lending rules that ensure an appropriate balance between indebtedness and income. The Council recommends maintaining the countercyclical capital buffer in Denmark at 2.5 per cent.

Review of the sector-specific systemic risk buffer

7 October 2025

The Council has reviewed the sector-specific systemic risk buffer. The Council finds that there are still systemic risks associated with commercial real estate that are not adequately addressed by other requirements. The Council also finds that the improvement in some cyclical conditions since the original recommendation in October 2023, particularly interest rates, may justify easing the current requirement.

The Council therefore recommends easing the measure by exempting exposures secured by real estate in the 0 to 30 per cent LTV range, while maintaining the buffer rate at 7 per cent. The exemption of exposures in the 0 to 30 per cent LTV range means that the most secure part of the exposures will be exempted.

Read more here