The EU-wide stress test is conducted every other year and covers the largest banks in the EU. The purpose is to assess whether the banks have sufficient capital to withstand a severe three-year economic downturn. From Denmark, Danske Bank, Nykredit, and Jyske Bank have participated in this year’s stress test.
The results for the Danish participants are significantly better than in the previous EU-wide stress test from 2023, which primarily reflects improved earnings due to higher interest rates.
“The capitalisation of the largest Danish institutions comes under significant pressure in the EU-wide stress test, but the institutions in general have enough capital to withstand a severe economic downturn. The results highlight the importance of continuously ensuring a robust capitalisation. This is important both for the individual institution and for financial stability in Denmark," says Deputy Director General of the Danish Financial Supervisory Authority, Kristian Vie Madsen.
The results of the stress test will be included in the supervisory assessment of the individual institutions’ capitalisation.
The Danish Financial Supervisory Authority’s ongoing dialogue with the institutions regarding capital targets, capital redemptions and distribution policy will continue to be based on stress tests using scenarios and assumptions determined by the Danish Financial Supervisory Authority.
Read a description of the Danish results here (PDF)
See detailed results for the Danish banks here