Stress tests
Risk manager: National Bank of Georgia
Liquidity stress tests provided confidence to ease daily thresholds, and offer exchange rate, internal market and financial system support, without forcing the liquidation of illiquid reserves
Fed’s 2021 stress test includes major asset price shock
CCAR will evaluate 19 largest banks; scenario includes 55% fall in equity prices
EU’s 2021 stress test includes ‘very severe’ adverse scenario
Adverse scenario foresees unemployment rising sharply and massive asset shock
BoE adjusts stress-testing framework
Tests this year will be based on 2020’s reverse stress test, as banks face “ongoing operational challenges”
RBI tells banks to prepare for delayed impact of Covid-19
Banks have avoided worst of the pandemic, but they must now raise capital, central bank says
Hernández de Cos on ECB policy, crises responses and Basel reform
Spanish governor and Basel Committee chair Pablo Hernández de Cos favours a form of average inflation targeting, says ECB is willing to boost stimulus and Basel reforms not diminished by Covid-19 exceptions; stresses the need for structural reform and…
Fed keeps some limits on bank dividends
All banks keep above minimum capital ratios under second round of stress-testing
Asean central banks call for joint action on climate risk
Asean policy-makers have work to do if they are to catch up with climate leaders, report says
BoE will not use climate stress tests to set capital buffers – Bailey
Andrew Bailey reveals new details of tests, with launch set for summer of 2021
Georgia’s Gvenetadze on implementing an aggressive reform agenda
The National Bank of Georgia governor speaks about efforts to improve monetary policy, financial infrastructure, financial literacy, transparency and ESG
Reserve Benchmarks 2020 report – charting new data frontiers
Perspectives on staffing and salaries, reserve coverage, portfolio construction, benchmarking, use of external parties and risk management
Stress-test results reinforce need for capital review – RBNZ
Under very severe scenario, banks need significant capital injections
Fed presents two severe stress scenarios to test Covid risks
Limits on share buybacks and dividend payouts may be extended as stress tests emphasise risks
Investment fund sector needs stress tests – Bundesbank paper
Researchers say their model finds investment firms can magnify losses from global asset price shock
BoE’s Stheeman sets out expectations on cyber resilience
Policy-makers will be guided by cyber stress-testing and “impact tolerances”
Some large reserve managers eschew liquidity stress tests
Majority of central banks test for thin trading, but three in 10 larger managers do not
Malta’s banking sector should withstand pandemic – central bank
Central bank says some lenders may struggle, but results of stress tests show most banks are secure
Stress test results affect consumer credit – Philadelphia Fed paper
Banks reduce credit supply after worse-than-expected stress test results, researchers find
Bundesbank paper examines stress-test models
Authors present a method to investigate how well stress tests predict bank failures
Fed rejects bank appeals against stress-test results
Goldman Sachs remains in top spot for overall requirement, as Fed reveals stress capital buffers
BoE runs ‘reverse stress test’ to prepare for renewed Covid crisis
Banks may have to take drastic “defensive actions” if UK suffers another major shock, BoE says
Q&A: New York Fed’s Stiroh on climate change and Covid
Co-chair of Basel task force discusses possible supervisory approaches to climate risk
How the Fed’s Covid stress test got stuck in the middle
Experts fear CCAR add-on has neither informed investors nor guided capital management
BIS warns of further shockwaves in ‘generation-defining’ crisis
Solvency crisis is looming on the horizon and health crisis is far from over, BIS officials say, as they present the 2020 annual report