October 3, 2019 / 8:41 AM / a month ago

Denmark to raise counter-cyclical buffer for banks

COPENHAGEN, Oct 3 (Reuters) - Denmark will raise the counter-cyclical buffer for banks to 2% from 1.5% from the end of 2020, the Ministry of Industry, Business and Financial Affairs said on Thursday.

The buffer is designed to ensure banks have the means to lend out money in difficult financial times.

The decision by the Danish government is in line with a proposal announced on Tuesday by the country’s Systemic Risk Council.

“It is responsible, that banks and mortgage institutes further pad themselves, so they are prepared for financial risks and international uncertainty,” newly-appointed Business Minister Simon Kollerup said in a statement.

Reporting by Nikolaj Skydsgaard; ; editing by John Stonestreet

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