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

Press release after 50. meeting

7 October 2025

The risk outlook for the financial sector in Denmark continues to be shaped by geopolitical tensions. However, more clarity on global tariffs may have contributed to lower uncertainty in financial markets in recent months. Domestically, the housing market once again draws attention, particularly in the capital where prices are rising significantly. This underlines the importance of lending rules as a safeguard against deteriorating credit standards. The Council recommends maintaining the countercyclical capital buffer in Denmark at 2.5 per cent. The Council has completed its review of the systemic risk buffer for exposures to real estate companies. Against the background of improved cyclical conditions, the Council recommends to the Minister of Industry, Business and Financial Affairs that the requirement is eased.

Press release after 50th meeting

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.

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