Danish banks show robustness in new European stress test
A new EU-wide stress test shows that the four largest Danish banks will maintain their capital buffers, even in the event of negative economic developments. Even under stress, Danske Bank, Nykredit, Jyske Bank and Sydbank will maintain Common Equity Tier 1 capital ratios of between 12.6-14.2 per cent at end-2018. The result of the stress test has not given rise to supervisory reactions. However, the Danish FSA emphasises that banks must continue their focus on building up capital.