Danish Banks Meet Capital Requirements in EU Stress Test

Denmark DFSA News

Published August 1st, 2025

Detected March 24th, 2026

Summary

The Danish Financial Supervisory Authority announced the results of the EU-wide stress test for Danish banks. While capital ratios were significantly depleted, the participating institutions, including Danske Bank, Nykredit, and Jyske Bank, generally met capital requirements under an adverse scenario, showing improvement from previous tests.

View original document View source feed page

What changed

The Danish Financial Supervisory Authority (DFSA) has published the results of the EU-wide stress test, indicating that Danish banks, including Danske Bank, Nykredit, and Jyske Bank, generally met capital requirements under a severe three-year economic downturn scenario. Despite significant depletion in capital ratios, the results show improvement compared to the 2023 stress test, attributed to higher interest rates.

These results will inform the supervisory assessment of individual institutions' capitalisation. The DFSA will continue its dialogue with banks regarding capital targets and distribution policies, utilizing stress tests with internally determined scenarios. While the overall results are positive, the DFSA emphasizes the importance of continuously ensuring robust capitalization for both individual institutions and overall financial stability in Denmark.

Source document (simplified)

Danish results of the EU-wide stress test 2025

Published 01-08-2025 The European Banking Authority (EBA) has published the results of the EU-wide stress test of the banking sector’s resilience. The stress test results show significant depletion in the capital ratios of the Danish institutions. However, apart from a negligible capital shortfall for Danske Bank, the Danish participants meet the capital requirements under the three-year adverse scenario.

The EU-wide stress test is conducted every other year and covers the largest banks in the EU. The purpose is to assess whether the banks have sufficient capital to withstand a severe three-year economic downturn. From Denmark, Danske Bank, Nykredit, and Jyske Bank have participated in this year’s stress test.

The results for the Danish participants are significantly better than in the previous EU-wide stress test from 2023, which primarily reflects improved earnings due to higher interest rates.

“The capitalisation of the largest Danish institutions comes under significant pressure in the EU-wide stress test, but the institutions in general have enough capital to withstand a severe economic downturn. The results highlight the importance of continuously ensuring a robust capitalisation. This is important both for the individual institution and for financial stability in Denmark," says Deputy Director General of the Danish Financial Supervisory Authority, Kristian Vie Madsen.

The results of the stress test will be included in the supervisory assessment of the individual institutions’ capitalisation.

The Danish Financial Supervisory Authority’s ongoing dialogue with the institutions regarding capital targets, capital redemptions and distribution policy will continue to be based on stress tests using scenarios and assumptions determined by the Danish Financial Supervisory Authority.

Read a description of the Danish results here (PDF)

See detailed results for the Danish banks here