When conducting macroprudential policy we need to ensure democratic accountability while avoiding inaction bias. Democratic accountability is important because measures such as restricting how much individuals can borrow have direct distributional effects. In Denmark, the responsibility is with the Minister for Industry, Business and Financial Affairs.
While it is the task of the Danish Systemic Risk Council to reduce the risk of political inaction bias. The Council can make recommendations and the minister then has to comply or explain. This ensures democratic accountability but it does not completely eliminate the inaction bias. The set-up with comply or explain can lead to a self-imposed inaction bias by the Council.