Norges Bank paper offers method of stress testing with fire sales


Researchers have designed a new method of stress testing that captures the effects of fire sales in a network of financial institutions with similar asset holdings, with their results published in a working paper by Norges Bank.

Regulations since 2008 have reduced the risks from direct exposures, but authors Rama Cont of Imperial College London and Eric Schaanning of Norges Bank flag the risk of “indirect contagion”, where fire sales mean one portfolio may be affected by macro events that also

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: