ESRB Receives Notification on Identification of O-SIIs in Denmark
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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Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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