June 24, 2020 / 8:53 AM / 9 days ago

Denmark to keep banks' emergency buffer at zero in second quarter of 2020

COPENHAGEN, June 24 (Reuters) - Denmark’s business minister said on Wednesday the so-called counter cyclical capital buffer will stay at zero in the second quarter of this year in order to let banks keep up their lending in the wake of the coronavirus crisis.

“Fortunately, financial markets have calmed since March, but I think it makes sense to wait rebuilding the buffer as uncertainty in the economy is still high,” Business Minister Simon Kollerup said in a statement.

The buffer, which was released in March, is adjusted every quarter by the business minister. On Tuesday, the Denmark’s Systemic Risk Council said it did not expect to recommend raising the buffer before 2021 at the earliest.

Reporting by Nikolaj Skydsgaard; Editing by Catherine Evans

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