Background for establishment of the Council
Due to the financial crisis and in order to support financial stability, there has, internationally and at EU level, been increased focus on the work on managing systemic risk, including limiting and containing systemic financial risks and their ramifications.
As of 1 January 2011, at the EU level, the European Systemic Risk Board, ESRB, was established, which is to contribute to identifying and managing the building up of systemic risks in the EU.
In December 2011, the ESRB recommended, that all member states appoint authorities to be responsible for managing systemic risks, e.g. in the form of a national systemic risk council.
The basis for the ESRB's recommendation is that, according to the ESRB, effective management of systemic risks in the EU depends on appropriate institutional frameworks for this management in each member state, as the specific tools are applied at national level and not at EU level. Furthermore, management of financial stability and the framework for this is being discussed in the member states, and, accordingly, there is a need for guidelines to help ensure consistency between countries.
In Denmark, the Minister for Business and Growth requested the Committee on the Structure of Financial Supervision in Denmark to assess possible options in Denmark. Further to this, the Committee issued a report on the establishment of a Systemic Risk Council in Denmark (in Danish). The Establishment of the Systemic Risk Council was subsequently approved by law in December 2012.