On the contrary, by eliminating the quasi-rent “subsidy” of their riskier assets, it recalls them to prudence. Supervisory action works in the same direction. On the theoretical plane there is no conflict between competition and banking stability.
Your organisation, FSR – Danish Auditors, has prepared an action plan to strengthen the quality of the sector in Denmark. I note that it includes strengthened public sector control of auditors, new tools for measuring the quality of the work performed and enhanced self-checks.