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European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Stress Testing of Banks

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  • International Monetary Fund

Abstract

This article summarizes the European Union’s stress testing exercises and future priorities. The 2011 solvency stress testing was marked by methodology and data. The exercise forced banks to increase the quality and quantity of capitalization. This test has many controversial issues, but the benefits of this bold approach overshadow the risks. Several stress testing exercises have filled the pages of literature; an additional stress test is reviewed here.

Suggested Citation

  • International Monetary Fund, 2013. "European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Stress Testing of Banks," IMF Staff Country Reports 2013/068, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2013/068
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    References listed on IDEAS

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    1. Jobst, Andreas A., 2014. "Measuring systemic risk-adjusted liquidity (SRL)—A model approach," Journal of Banking & Finance, Elsevier, vol. 45(C), pages 270-287.
    2. David Aikman & Piergiorgio Alessandri & Bruno Eklund & Prasanna Gai & Sujit Kapadia & Elizabeth Martin & Nada Mora & Gabriel Sterne & Matthew Willison, 2011. "Funding Liquidity Risk in a Quantitative Model of Systemic Stability," Central Banking, Analysis, and Economic Policies Book Series, in: Rodrigo Alfaro (ed.),Financial Stability, Monetary Policy, and Central Banking, edition 1, volume 15, chapter 12, pages 371-410, Central Bank of Chile.
    3. International Monetary Fund, 2010. "United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism," IMF Staff Country Reports 2010/253, International Monetary Fund.
    4. International Monetary Fund, 2010. "United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Consolidated Regulation and Supervision," IMF Staff Country Reports 2010/251, International Monetary Fund.
    5. Eric Wong & Cho-Hoi Hui, 2009. "A Liquidity Risk Stress-Testing Framework with Interaction between Market and Credit Risks," Working Papers 0906, Hong Kong Monetary Authority.
    6. International Monetary Fund, 2010. "United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Crisis Management Arrangements," IMF Staff Country Reports 2010/120, International Monetary Fund.
    7. Miss Liliana B Schumacher & Mr. Theodore M. Barnhill, 2011. "Modeling Correlated Systemic Liquidity and Solvency Risks in a Financial Environment with Incomplete Information," IMF Working Papers 2011/263, International Monetary Fund.
    8. International Monetary Fund, 2010. "United States: Publication of Financial Sector Assessment Program Documentation: Financial System Stability Assessment," IMF Staff Country Reports 2010/247, International Monetary Fund.
    9. International Monetary Fund, 2010. "Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Insurance Sector," IMF Staff Country Reports 2010/154, International Monetary Fund.
    10. Mr. Claus Puhr & Mr. Andre O Santos & Mr. Christian Schmieder & Salih N. Neftci & Mr. Benjamin Neudorfer & Mr. Stefan W. Schmitz & Mr. Heiko Hesse, 2012. "Next Generation System-Wide Liquidity Stress Testing," IMF Working Papers 2012/003, International Monetary Fund.
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    Cited by:

    1. Peter Zweifel & Dieter Pfaff & Jochen Kühn, 2015. "A Simple Model of Bank Behaviour—With Implications for Solvency Regulation," Studies in Microeconomics, , vol. 3(1), pages 49-68, June.

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