Smaller banks struggle in Danish stress tests

National Bank of Denmark

Danish investors holding the debt or shares of smaller banks may suffer losses if a severe recession hits the country, according to the National Bank of Denmark’s latest stress test results.

“Several of the smaller, non-systemic banks face difficulties in the stress test,” the central bank reveals in its report on the results. “Some have insufficient capital to satisfy their capital buffer requirements, and a few are close to breaching the minimum requirement.”

Unlike other central banks, who

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