DFAST monoculture is its own test
Drop in frequency and scope of stress test disclosures makes it hard to monitor bank mimicry of Fed models
From what constitutes adequate capitalisation to how more opaque trading activities should be risk-weighted, the regulatory response to the 2008 financial crisis marked a paradigm shift on many fronts.
When it comes to public interest, however, the most consequential rethink arguably addressed the question of who stress tests serve – and what information they provide.
When Washington officials announced, in early 2009, that they would subject banks to what they initially termed a supervisory
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