may have implications for financial stability and for the government finances. it is a sound principle that the requirements for financial institutions are risk - based. i suppose we all agree on that. this helps to ensure sound incentives. so the basel output floors that remove sensitivity to risk is not page 5 of 7 an idea that we have nurtured. the mrel should be risk - based like the capital requirements. secondly, the mrel should be the same, no matter how risk is distributed across the group. this means that there is no incentive to move risks to the entity subject to the least stringent requirements. thirdly, the mrel should be neutral from a competition perspective. the mrel to cover loans of the same nature which are to be treated equally in a resolution solution must be the same, irrespective of whether the loan has been granted by a bank or a mortgage bank. if these principles are to be observed, a consolidated mrel must be set, comprising all entities of a sifi. this will also bring us in line with european standards. we suggest that the mrel is, as a main rule, set at twice the capital requirement plus the combined buffer requirement for all sifis. we also suggest that a reduction is granted for, inter alia, the basel floors if they are introduced so that the requirement does not become unreasonably severe in relation to the actual risks of the groups. however, 8 per cent of the total balance sheet assets is a relevant minimum requirement so that it is possible to top up with funds from the resolution fund if necessary. legislation says that mortgage banks must be resolved without use of bail - in. that is why mortgage banks are exempt from the mrel. since this legislation was adopted, we have been putting much effort into finding out how to resolve sifis. slid 6 : it was a mistake we made a mistake when we exempted mortgage banks from bail - in and mrel and introduced the debt buffer. the work on sifi resolution plans has now reached a point where it is necessary for us to correct this error so that we can proceed. consequently, danmarks nationalbank has recommended that the legislator should repeal the exemption of mortgage banks from bail - in and mrel. the potential gains are large, while the costs are very limited. this will make it possible to adapt resolution plans to the sifis'business models and not vice versa. page 6 of 7 the alternative – to operate with plans

crisis, while other central banks were cutting their rates, for good reasons. there are also implications of the choice of exchange rate regime that go beyond macroeconomic outcomes. financial stability considerations, for example, play a role too. but this topic is for another day. * * * the future is uncertain – underscores need for stable anchor * * * the advantages of the regime are likely to become even more important and valuable when looking ahead. we are facing uncertain times and a potentially more volatile global economy than what we had become used to in the years of the so - called great moderation. globalisation may be on retreat and protectionist tendencies are gaining ground. these tendencies are reinforced by the pandemic, russia ’ s war in ukraine and broader geopolitical developments. but they were already in train before. climate change is causing disruptions. high temperatures, droughts and limited wind in europe increased existing energy supply disruptions this summer. the energy transition and climate events will become increasingly disruptive in the years ahead. see e. g. rey, helene 2013. “ dilemma not trilemma : the global financial cycle and monetary policy independence. ” proceedings – economic policy symposium – jackson hole, federal reserve bank of kansas city : 285 – 333. page 6 of 7 as we are hit by shocks and volatility, it is important to have sound economic structures supported by strong institutions. many of the shocks that we currently face are global in nature. they will impact the euro area as well as denmark. aligning ourselves closely with the euro area while ensuring a credible and stability - oriented framework for fiscal policy is therefore likely to continue to be desirable. conclusion to conclude, the danish economy has been on a remarkable journey over the last four decades. while the reasons are many, as well reflected in our conference today, i am convinced that the decision to adopt a fixed exchange rate regime has played a central role. i have focused on the many advantages we experience with our system. but it is also clear that the fixed exchange rate regime is not a one - sizefits - all panacea. as we have heard, there are a number of ways monetary stability can be achieved, and any regime has trade - offs. but advantages in my view outweigh drawbacks for denmark. i am convinced this is also the case in the years to come. it has stood the test of time over forty years – and it is as relevant as ever. thank you for your