Featured Product

    IMF Published Reports on 2017 Article IV Consultation with Denmark

    June 20, 2017

    IMF published its staff report and selected issues report in the context of the 2017 Article IV consultation with Denmark. The IMF Directors commended the authorities for good progress on upgrading the financial regulatory framework. As per the staff report, the authorities have taken major strides implementing EU regulations, including those related to Capital Requirements Directive and Regulation (CRD IV/CRR), Solvency II, and the Bank Recovery and Resolution Directive or BRRD.

    The staff report also highlighted that, in 2016, Danish Financial Supervisory Authority (DFSA) introduced liquidity coverage ratio (LCR) requirements for systemic and non-systemic banks. All systemic banks have capital buffers in excess of regulatory minima, with the system-wide regulatory tier 1 capital ratio currently at about 21%. Short-term liquidity requirements are met comfortably, with all systemic credit institutions exceeding the current minimum LCR. A current issue under the CRR is the application of the net stable funding ratio (NSFR), where the treatment of short-term mortgage bonds as stable funding remains to be resolved before implementation in 2018. Under the BRRD, a remaining item is the introduction of the minimum requirement for own funds and eligible liabilities (MREL). DFSA has set out preliminary principles, which suggest that MREL for systemically important financial institutions will be set at two-times the total capital requirements—to be met with convertible instruments (that can be bailed-in). Individual bank requirements are expected by year-end. Meanwhile, insurance firms and pension funds have been adjusting their product designs to cope with the low interest rate environment, particularly by shifting away from guaranteed-return products to market-based products. Insurance stress tests show that Danish insurance firms would be less affected in stress scenarios than their peers abroad, including because their interest-rate sensitivity is reduced by using derivatives.

     

    The selected issues report examines the household balance sheet structure in Denmark and sensitivity to rising rates. Another area addressed by this report is the migration integration in Denmark and Europe. The report also investigates the dynamics of firm investment in Denmark, using an augmented version of the traditional accelerator model of investment.

     

    Related Links

    Staff Report (PDF)

    Selected Issues Report (PDF)

    Keywords: IMF, Denmark, Article IV, Europe, Banking, Insurance, LCR, CRD IV

    Related Articles
    News

    HKMA Announces Liquidity Measures in Response to COVID-19 Outbreak

    HKMA issued a circular on liquidity measures that HKMA has taken or plans to take in response to COVID-19 outbreak.

    April 03, 2020 WebPage Regulatory News
    News

    BaFin Lowers Countercyclical Capital Buffer Amid COVID-19 Outbreak

    BaFin published a general order to lower the countercyclical capital buffer (CCyB) from 0.25% to 0% as of April 01, 2020.

    April 03, 2020 WebPage Regulatory News
    News

    ESMA Updates Risk Assessment in Light of COVID-19

    ESMA updated its risk assessment to account for the impact of the COVID-19 pandemic.

    April 02, 2020 WebPage Regulatory News
    News

    FSB Outlines and Reprioritizes Its Work to Address COVID-19 Risks

    FSB published a statement that outlines its work toward addressing the financial stability risks posed by COVID-19, along with the reprioritization of its work program for 2020.

    April 02, 2020 WebPage Regulatory News
    News

    EIOPA Announces Measures to Address the Impact of COVID-19

    Due to the outbreak of COVID-19, EIOPA is re-prioritizing and alleviating the burden by extending the deadlines or delaying projects where input from national competent authorities and/or industry is foreseen.

    April 02, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Use of Payment Moratoria to Address Liquidity Issues

    EBA published detailed guidance on the treatment of legislative and non-legislative moratoria on loan repayments to be applied before June 30, 2020, in light of the COVID-19 crisis.

    April 02, 2020 WebPage Regulatory News
    News

    PRA Outlines Approach to Reporting and Disclosures Amid COVID-19

    PRA published a statement to outline its approach to regulatory reporting and Pillar 3 disclosures for UK banks, building societies, designated investment firms, and credit unions.

    April 02, 2020 WebPage Regulatory News
    News

    PRA Finalizes Certain Modeling Issues for Solvency II Internal Models

    PRA published a statement (PS9/20) that sets out the final policy on modeling of income-producing real estate loans and internal credit assessment for illiquid, unrated assets within the Solvency II internal models.

    April 02, 2020 WebPage Regulatory News
    News

    EIOPA Issues Statement on Mitigating Impact of COVID-19 Outbreak

    EIOPA issued a statement to insurers and intermediaries, urging them to take steps to mitigate the impact of COVID-19 on consumers.

    April 01, 2020 WebPage Regulatory News
    News

    APRA on Changes to Reporting Obligations for Banks Due to COVID-19

    APRA, in collaboration with the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), published a letter outlining temporary changes in reporting obligations for authorized deposit-taking institutions and registered financial corporations, in response to COVID-19.

    April 01, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4936