Various indicators imply more risks are faced by the financial system of Denmark’s central bank since some of the biggest banks in the country have insufficient capital to reach out for buffer requirements, according to the central bank on Wednesday. Profits of large financial institutions, such as Danske Bank, and some mortgage banks gained a record high profit in the first six months of the year. This gave a positive sentiment to the financial sector and improved the risk appetite. Most of the banks accelerate the process through the easing of credit policies and approving loans to more “vulnerable” customers, stated by the chairman of the central bank board of governors.
