Denmark’s central bank says risks are building up in the financial system

COPENHAGEN (Reuters) – Denmark’s central bank said Wednesday that several indicators suggest risks are building up in the financial system, and that a few of the country’s largest banks do not have sufficient capital to meet buffer requirements.

The largest banks and mortgage banks, including Denmark’s top lender Danske Bank (CO:), saw record high profits in the first half of 2017, which boosted optimism in the financial sector and helped increase risk appetite, the central bank said.

“Several banks are stepping on the accelerator by easing credit standards and granting loans to more vulnerable customers,” Lars Rohde, the chairman of the central bank board of governors, said in a statement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.