It can also mean that the Danish economy is not particularly sensitive to the international development. But this is not to say that we are not affected at all. Unemployment has risen during the past half-year, but the level is still low compared to other countries in Europe and compared to the situation in the 1990s. Some economic indicators, e.g.
The appropriate supervisory and regulatory response to these risks would, therefore, be to insist on full disclosure and transparency of off-balance sheet commitments / exposures and supervisory insistence on an appropriate mix of “stored” and “purchased” liquidity and appropriate capital charge for liquidity risk; the higher the “purchased liquidity” component, the higher the capital charge and the higher the “stored liquidity” component, the lower the capital charge.