Financial Sector Assessment Program – Technical Note – Financial Safety Net and Crisis Management Systems
Denmark: Financial Sector Assessment Program – Technical Note – Financial Safety Net and Crisis Management Systems
Author / Publisher:
International Monetary Fund. Monetary and Capital Markets Department
Aug 12, 2020
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Since the 2014 FSAP, Denmark’s financial safety net and crisis management frameworks, including bank resolution, have improved significantly. In response to the FSAP and the transposition of relevant European Union (EU) rules, Denmark enacted major reforms, including new legislation for the resolution and insurance of deposits, introduced a resolution framework for banks and mortgage credit institutions (ICMs), appointed two national resolutions competent authorities, established resolution colleges, changed the governance of the deposit insurance system (DIS) and relaunched cross-border cooperation through the Nordic Stability Group and Baltic (NBSG), in particular by revising an earlier memorandum of understanding and by carrying out a joint crisis simulation in 2019.