If such chronic stresses continue to exert downward pressure on regional institutions' profits, it becomes highly likely that financial institutions will engage in excessive risk taking. For 11  Not only the effects of monetary easing but also a decline in the natural rate of interest associated with changes in demographic profile has contributed to a decline in market interest rates.
BIS Review 31/2007  3  Part of the IMF's Financial Sector Assessment Program of the Danish financial sector in 2005-06 was to assess the core elements of the Danish financial infrastructure in relation to international standards. The IMF recommended a few changes. Danmarks Nationalbank will work with those responsible for the systems to ensure that the necessary improvements are made.