Financial Stability 2007

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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.   |
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| 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.  
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| 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."  
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| "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." 
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| "Our overall assessment is that currently there is no major threat to        |
| financial stability in Denmark," Nils Bernstein concludes.  
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| For further information, please contact Hugo Frey Jensen on tel.: (+45) 33   |
| 63 61 01.                                                                    |
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