Stress tests
ECB sets out plans for disclosing comprehensive assessment results
European Central Bank on course to publish findings from its asset quality review and stress tests in late October; reveals the template it will use for disclosing the results
Israeli banks' core capital ratio would fall to 7.5% in crisis, stress tests show
Banking system would show cumulative loss of three billion shekel, says Bank of Israel, but there would be 'no risk to stability'
Tarullo says Fed must ‘hone' stress test regime
Fed governor says some firms still lack ‘reliable information' about their business exposures; hints at more attention to developing tests' macro-prudential elements
Philippines tailors stress tests to real estate exposures
Central Bank of the Philippines approves new prudential guidelines to incorporate in bank stress tests; insists they are preferable to ‘absolute limits’ on real estate exposures
EBA stress tests prove contentious: have your say
Market analysts raise concerns over the lack of a deflationary scenario in the forthcoming EU wide stress test; CentralBanking.com poll asks if the tests are strict enough
Dutch say US stress tests produced ‘valuable information’
Researchers find the disclosure of stress test results in the wake of the financial crisis had a ‘strong’ effect on credit default swap spreads, but less of an impact on stock returns
Fed rejects Citi's dividend plans
The Federal Reserve has rejected the capital plans of five systemically important banks following annual stress tests; Bank of America and Goldman Sachs squeeze through
Stress test revisions ‘an embarrassment’ for the Fed
Federal Reserve revises stress test results due to ‘inconsistent’ assumptions of banks’ capital plans; ‘undermines confidence’ in the institution, according to former official
Downturn could halve capital ratios of biggest US banks, Fed stress tests show
Bank of America, Goldman Sachs, JP Morgan, Citigroup and Morgan Stanley all perform below average in Fed stress tests
Hungary central bank sets out stress test methodology
Working paper explains how the National Bank of Hungary conducts its stress tests, aimed at ensuring the system can survive an intensive month-long liquidity shock
EBA announces key ratios for European bank stress tests
European Banking Authority wants to see CET1 ratios of 8%, with 5.5% the threshold for an ‘adverse scenario'; stress tests to begin in the spring with results due out in October
Slovenian banks need €4.8 billion cash injection, government says
Public bailout expected to raise public debt burden by 20 percentage points; country's three largest banks in particular dire straits, according to recently wrapped-up external asset quality review
Basel capital ratios lost credibility during crisis - Atlanta Fed paper investigates
Working paper says reliance of the Basel standards on overstated asset values in reported equity capital caused capital adequacy ratios to lose credibility with financial markets
Draghi wants European public backstop for stress tests
ECB president Mario Draghi says both national and European public funds should be in place ahead of the comprehensive assessment to ensure it is a ‘credible exercise’
IMF paper backs stress test ‘rules of thumb’
Researchers from the IMF and BIS say rough guides to the typical relationships between credit levels and bank solvency can be useful tools in bank stress tests
Bank of Slovenia lifts lid on bank health checks
The 10 banks under investigation will be subjected to asset quality reviews and bottom-up stress tests; results will be challenged by an outside consultancy
Constâncio insists private sector will play ‘major’ role in filling capital shortfalls
The ECB’s vice-president says banks will be able to fill any capital holes turned up in the central bank’s comprehensive assessment at least partly through private funds
Federal Reserve reveals new, tougher stress tests
Details of stress tests for 2014 include scenario based on severe global recession, with some banks facing additional criteria; tests will be applied to 12 more banks than before
Slovene bank clean-up provides stress test dry run for ECB
IMF urges country to recapitalise banks quickly; academics see country as 'methodology experiment' for ECB, and warn comparisons with Greece and Cyprus could be self-fulfilling prophecies
BIS paper weighs future of liquidity stress tests
Bank for International Settlements working group compiles survey on current stress-testing practices among its members, and identifies a basic framework of what future tests could include
ECB unveils three-pronged comprehensive assessment
European Central Bank reveals the methodology behind the risk assessment, asset quality review and stress test it will use to scrutinise the eurozone’s largest banks over the next year
BoE's Tucker wants more robust CCP governance
Bank of England deputy governor Paul Tucker raises concerns over the size and for-profit nature of CCPs; says stress tests not possible until loss allocation work is finalised
Bank of England proposes new stress test regime
Deputy governor Paul Tucker says new framework will boost confidence in the UK financial system and help ensure the Bank is publicly accountable for its financial stability operations
BIS research dismisses fears over high-quality asset shortage
Article says increase in high-quality assets appears sufficient to meet rising demand, but risks could still come from elsewhere