Regulatory Alerts2025-08-20
Order on the Calculation of the Institution-Specific Countercyclical Capital Buffer Rate, Maximum Distribution Amounts, and the Content of a Capital Conservation Plan for Certain Financial Undertakings
The Danish Financial Supervisory Authority issued this Order to establish calculation methodologies for the institution-specific countercyclical capital buffer, maximum distribution amounts, and capital conservation plans for credit and mortgage institutions. The regulation mandates that institutions calculate buffer rates based on weighted average country-specific rates and restricts distributions based on core capital quartiles and prior payout actions. Compliance requires the submission of detailed capital conservation plans to the supervisor, with violations subject to fines and corporate criminal liability.
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