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

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958