The Council's work includes monitoring of the financial system, recommendations on policies and evaluation of policies in Denmark, on the Faroe Islands and in Greenland. Read more about the specific areas beneath.
Monitoring systemic risks is a central part of the Council's work. In its monitoring, the Council analyses the financial development from six different angles, including credit growth and gearing, exposure concentrations, maturity transformation and market illiquidity.
The Council can recommend changes to the countercyclical capital buffer. The buffer shall be built during good times, so it can be released during periods of stress. Releasing the buffer aims to prevent the banks and mortage credit institutions from reducing their credit supply in a crisis due to capital shortfalls.
As of 2021 it has become possible to set a systemic risk buffer for Danish banks.
The housing market has a large influence on the financial system, as home loans account for a large share of the total balance sheets of credit institutions and households. Hence, developments in the housing market are closely monitored by the Council.
When the Council makes recommendations on macroprudential measures in Denmark, the Council assesses the cross-border effects of the measure in question and considers whether other countries should be asked to reciprocate the measure.
The Council can make recommendations on policy measures on the Faroe Islands, as is the case for Denmark.
The Council can make recommendations on policy measures in Greenland, as is the case for Denmark.
The data underlying the key indicators are published after each meeting of the Systemic Risk Council. Read more about the specific data publications.