Years of excessive optimism and financial innovation led to record household debt and a banking crisis in Denmark in the naughts. Conditions are ripening again for a similarly heady combination, according to the countrys financial watchdog.
The Financial Supervisory Authority laid out today the strategy that will guide its work until 2020. Denmarks lenders are now healthier than theyve been in almost a decade, so its chief focus will be on ensuring that an improving economy doesnt erode progress made in rebuilding banks capital and liquidity, Jesper Berg, head of the Copenhagen-based agency, said in a statement.
Historically, the seeds for problems are sown in good economic times, said Berg, who took over as head of the FSA in October. We…
Read the full article at: http://www.bloomberg.com/news/articles/2016-06-29/bank-watchdog-in-denmark-revamps-oversight-to-avoid-next-crisis