The Council assesses the level of the countercyclical capital buffer rate every quarter. The information base used in the Council's assessment is described in the Council's methodology note.
The Council may make recommendations on the use of the countercyclical capital buffer. It is the Minister for Industry, Business and Financial Affairs who is responsible for the quarterly setting of the buffer rate in Denmark. The minister may either comply with the recommendation or submit an explanation to why a recommendation is not followed.
In 2017 the Council revisited the method to assess the level of the countercyclical capital buffer rate. The previous method was published in 2014. The revision incorporates the Council's own experiences as well as experiences abroad during the three year period. As more experience is gained, the Council will further develop its methodology for setting the buffer rate.
In June 2019, the European Systemic Risk Board, ESRB, assessed that Denmark's method for assessing the buffer rate is in full compliance with the European guidelines.
The data underlying the key indicators used by the Council to assess the level of the countercyclical capital buffer is published after each quarterly meeting of the Systemic Risk Council. In addition to the key indicators, other information is included in the Council's considerations, such as other indicators and policy measures.