COPENHAGEN, June 14 Several Danish banks would
be close to exceeding their capital buffer requirements in the
event of a severe recession, a stress test done by the country's
central bank showed on Wednesday.
The largest banks, including Denmark's top lender Danske
Bank, in general have excess capital adequacy, the
"But several banks are close to exceeding the capital buffer
requirements in a severe recession scenario, and a few fall
short of the requirements," the central bank said.
While the banks have larger buffers today than in 2007, "in
some areas, current developments are similar to developments in
the period up to the financial crisis," it said.
Systemically important financial institutions are projected
to have a capital shortfall of 2.9 billion Danish crowns at
end-2019 in case of a severe recession, it said.
Overall, Denmark's largest banks achieved their best ever
performance with sound profits in 2016.
(Reporting by Jacob Gronholt-Pedersen; Editing by Hugh Lawson)