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| Financial Stability 2007 |
|
Danmarks Nationalbank today publishes its annual report on financial |
| stability in Denmark, "Finansiel stabilitet 2007". The English edition is |
| expected to be available at Danmarks Nationalbank's website as from 31 May. |
| The printed English version is expected to be released on 31 May. The |
| publication will be available at www.nationalbanken.dk under Publications. |
| |
| The most significant risks to the financial system are analysed in the |
| report, including situations that are very unlikely to arise, but which |
| might have major consequences for the economy. It is assessed whether the |
| overall financial system is sufficiently robust for any problems experienced |
| within the sector not to spread and prevent the financial markets from |
| functioning as providers of capital and financial services. It is the task |
| of the Danish Financial Supervisory Authority to ensure that each financial |
| institution is sufficiently robust.
|
| In connection with the report's publication, Governor Nils Bernstein says: |
| "For the fourth year running, the Danish economy is booming, and this is |
| reflected in the earnings of the banking institutions, which in 2006 were, |
| once again, record-high. The banking institutions' capital buffers have also |
| grown a little, and in our assessment the banking institutions' resilience |
| to increased losses is good."
|
| "The finances of the banking institutions' customers - the corporate sector |
| and the households - remain sound," Nils Bernstein adds. "The number of |
| failing Danish companies is low, and prospects are good. The households' |
| disposable real incomes have risen considerably, and wealth has grown |
| rapidly in recent years in step with the surge in housing prices. A |
| dampening of the housing market was, however, seen in 2006 and early 2007, |
| but there is no reason to expect major house price falls for as long as the |
| economy remains strong."
|
| "Our overall assessment is that currently there is no major threat to |
| financial stability in Denmark," Nils Bernstein concludes.
|
| For further information, please contact Hugo Frey Jensen on tel.: (+45) 33 |
| 63 61 01. |
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