July 4, 2019 / 11:08 AM / 4 months ago

Denmark raises counter-cyclical buffer for banks

COPENHAGEN, July 4 (Reuters) - The Danish government said on Thursday it had decided to increase the counter-cyclical buffer for banks to 1.5% from 1% from June 30, 2020.

The move follows a proposal in March by the country’s financial advisory council to the government to raise the buffer by 50 basis points to 1.5% in June next year.

“It is responsible policy to increase the banks’ resilience at times where the Danish economy is good and the banks have high earnings,” said newly appointed business minister Simon Kollerup in a statement.

“It is possible that some banks will find they cannot pay as much in share dividends as they would otherwise have,” he said. (Reporting by Jacob Gronholt-Pedersen; Editing by Toby Chopra)

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