Danish Financial Supervisory Authority (DFSA) notified EBA, ECB, and ESRB about its decision on the identification of other systemically important institutions (O-SII) and the level of systemic risk buffers for these institutions. Additionally, the Central Bank of Hungary (MNB) has notified ECB and ESRB on the amendment of the regulation on debt-service-to-income (DSTI) ratio and loan-to-value (LTV) ratio limits.
DFSA notified that the designation of O-SIIs in Denmark applies at the highest possible level of consolidation. The O-SII institutions in Denmark include Danske Bank A/S, Nykredit Realkredit A/S, Nordea Kredit Realkreditaktieselskab, Jyske Bank A/S, Sydbank A/S, DLR Kredit A/S, and Spar Nord Bank A/S. The identification of O-SIIs and the allocation into subcategories is reviewed at least annually and always in the months of May or June. The O-SII buffer is not applied in Denmark. However, an institution-specific systemic risk buffer applies. The systemic risk buffer applies to the institution designated as O-SII and to each individual credit institution of the O-SII. The Minister of Industry, Business and Financial Affairs sets the systemic risk buffer. For Spar Nord Bank A/S, the systemic risk buffer has been set to 0.5% at the end of 2019 and to 1% at the end of 2020, according to the Danish Financial Business Act.
Keywords: Europe, Denmark, Banking, Systemic Risk Buffer, O-SII, Macro-Prudential Measures, Systemic Risk, LTV, DFSA, MNB, EBA, ECB, ESRB
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