Denmark : Financial Sector Assessment Program, Macroprudential Policies: Technical Note.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Contributor:

International Monetary Fund, issuing body.

Series:

IMF Staff Country Reports; Country Report ; No. 2014/347

IMF Staff Country Reports

Language:

English

Subjects (All):

International Monetary Fund--Denmark.

International Monetary Fund.

Economic development--Denmark.

Economic development.

Denmark--Economic conditions.

Denmark.

Denmark--Economic policy.

Physical Description:

1 online resource (52 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2014.

Summary:

This technical note discusses significance of macroprudential policies for Denmark. Macroprudential policy seeks to contain the buildup of macrofinancial imbalances associated with credit booms and asset price bubbles, a function which is particularly important in Denmark, where the space for monetary policy action is limited. This note provides an analysis of existing frameworks used in Denmark for identifying systemic risk of both structural and cyclical nature. The note also suggests additional tools that the authorities could use to further enhance their capacity to evaluate systemic risks.

Contents:

Cover; CONTENTS; GLOSSARY; EXECUTIVE SUMMARY; IDENTIFICATION OF SYSTEMIC RISK; A. Current Framework: Structural Systemic Risk; TABLES; 1. Danish Banks and Mortgage-Credit Institutions Which Fulfill the Quantitative Criteria for Identification as SIFI, Consolidated Level; B. Current Framework: Cyclical Systemic Risk; C. Possible Additional Tools; FIGURES; 1. Financial Stability Maps for Denmark and the World; 2. Financial Stability Map: Components of Credit Risk and Risk Appetite; 2. Financial Sector Vulnerability in Denmark; 3. NPL Ratios by Group of Commercial Banks

3. Indicators of Systemic Risk4. Risk Indicators, GDP, and Credit Growth; 5. Cross-Sector Linkages Within Denmark; 6. Cross-Sector Linkages from Denmark to Other Countries; 7. Network of Largest Gross Claims; POLICY INSTRUMENTS; A. Existing framework; 4. Scale for the SIFI Capital Requirement; 8. SIFI Requirements: Comparison Across Countries; B. Possible Additional Policy Instruments; 9. Limits on LTV and DSTI Ratios Across Countries; INSTITUTIONAL FRAMEWORK; A. Current Framework; B. Cross-Country Perspectives; 10. Number of Countries by Designated Macroprudential Authority in Europe

C. AssessmentAPPENDICES; I. Indicators for Country Financial Stability Map; II. Key Indicators for Vulnerability Exercise; III. Implicit Government Subsidy for Too Important to Fail Banks: The Case of Danske; IV. Countercyclical Capital Requirements: Guidelines; V. Cross-Country Experience on Caps on LTV/DSTI Ratios and Higher Risk Weights; REFERENCES

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF cover (ebrary, viewed March 5, 2015).

ISBN:

9781498382298

1498382290

9781498381369

1498381367