ECB study finds banks window-dressing before stress tests
Lower-ranked lenders shifted risky assets ahead of 2021 and 2023 exercises
Banks anticipate and adjust their portfolios to appear more resilient to stress tests in the European Union, according to a new study by the European Central Bank.
The paper, published on August 12, examines data from the 2021 and 2023 EU-wide stress tests conducted by the European Banking Authority and the single supervisory mechanism.
The authors – Angelo Cuzzola, Claudio Barbieri and Grzegorz Hałaj – find that lenders “strategically” deploy window-dressing before stress tests are conducted
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 info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Macro-prudential
MNB puts sectoral buffers in place as real estate pressure mounts
Subsidised loans have increased demand for property significantly, central bank finds
BoT seeks more oversight of gold trade to prevent baht volatility
Vitai says bank is working to boost supervision of institutions and dealers involved in precious metal
Vietnam to allow major banks to increase gold positions
State media says central bank aims to reduce gap between global and domestic prices of precious metal
Belgium simplifies capital buffers, increases CCyB by 25bp
Mortgage-specific measure to be folded into single, general buffer
Bundesbank following US instability ‘very closely’ – Nagel
Central bank president says AI and geopolitics pose risks to financial stability
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
‘Opaque’ AI poses supervisory challenge, says BdF’s Beau
Deputy governor says focus should be on data required for ‘new elements’ of EU’s AI act
RBNZ plans to relax lending restrictions for home purchases
New Zealand central bank says moves will make borrowing easier for first-time buyers