1 Min Read
COPENHAGEN, June 14 (Reuters) - 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 bank said.
"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)