Denmark’s central bank proposes reforms to mortgage credit market

National Bank of Denmark
National Bank of Denmark
Rachael King

The National Bank of Denmark is in favour of introducing regulatory changes to the financial system to enhance competition in the market for mortgage credit.

The central bank identifies that “the mortgage banks’ direct competition with each other is only limited”. As such, it is advocating a series of reforms to foster competition while safeguarding the stability of the financial system.

The regulator points out that the reforms must ensure institutions’ capital adequacy is “robust and

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