There is no avoiding it – even if there is still a great deal of spare capacity in the economy. Add to this the erosion of wage competitiveness, strong pressures on expenditure, a heavy tax burden, low productivity increases and a limited job supply. The Danish economy is facing serious challenges far beyond cyclical factors. And now over to mortgage credit.
The international financial crisis has demonstrated that there is a need for financial institutions having bigger capital buffers and larger and more stable liquidity reserves. Events deemed very unlikely by risk management models did actually occur. International work is going on in order to formulate and agree on new rules addressing the problems unveiled by the crisis.