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List Of Bank Stress Tests
:''This list covers formal bank stress testing programs, as implemented by major regulators worldwide. It does not cover bank proprietary, internal testing programs.'' A bank stress tests is an analysis of a bank's ability to endure a hypothetical adverse economic scenario. Stress tests became widely used after the 2008 financial crisis. Example For example, in the U.S. in 2012, an adverse scenario used in stress testing was all of the following: * Unemployment at 13 percent * 50 percent drop in equity prices * 21 percent decline in housing prices. Asia * Monetary Authority of Singapore ** Annual Industry-Wide Stress Testing exercise (usually around Q1) * International Monetary Fund ** 2011 and 2012 stress testing of Japan banks, Financial System Stability Assessment Update (FSAP) * China Banking Regulatory Commission ** 2011 CARPLES risk indicators framework * Australian Prudential Regulation Authority ** 2014 industry stress test * Reserve Bank of New Zealand ** 2014 major bank ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank Stress Tests
A stress test, in financial terminology, is an analysis or simulation designed to determine the ability of a given financial instrument or financial institution to deal with an economic crisis. Instead of doing financial projection on a "best estimate" basis, a company or its regulators may do stress testing where they look at how robust a financial instrument is in certain crashes, a form of scenario analysis. They may test the instrument under, for example, the following stresses: * What happens if unemployment rate rises to v% in a specific year? * What happens if equity markets crash by more than w% this year? * What happens if GDP falls by x% in a given year? * What happens if interest rates go up by at least y%? * What if half the instruments in the portfolio terminate their contracts in the fifth year? * What happens if oil prices rise by z%? * What happens if there is a polar vortex event in a particular region? This type of analysis has become increasingly widespread, an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
European Central Bank
The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International use, most important central banks. The Governing Council of the European Central Bank, ECB Governing Council makes the projects for the monetary policy for the European Union with suggestions and recommendations and to the Eurozone with more direct applications of such policies, it also administers the foreign exchange reserves of EU member states in the Eurozone, engages in foreign exchange operations, and defines the intermediate monetary aims and objectives, and also the common interest rates for the EU. The Executive Board of the European Central Bank, ECB Executive Board makes policies and decisions of the Governing Council, and may give direction to the national central banks, especially when doing so for the Eurozone central ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stress Tests (financial)
Stress may refer to: Science and medicine * Stress (biology), an organism's response to a stressor such as an environmental condition * Stress (linguistics), relative emphasis or prominence given to a syllable in a word, or to a word in a phrase or sentence * Stress (mechanics), the internal forces that neighboring particles of a continuous material exert on each other * Occupational stress, stress related to one's job * Psychological stress, a feeling of strain and pressure * Surgical stress, systemic response to surgical injury Arts, entertainment, and media Music Groups and musicians * Stress (Brazilian band), a Brazilian heavy metal band * Stress (British band), a British rock band * Stress (pop rock band), an early 1980s melodic rock band from San Diego * Stress (musician) (born 1977), hip hop singer from Switzerland * Stress (record producer) (born 1979), artistic name of Can Canatan, Swedish musician and record producer Albums * ''Stress'' (Anonymus album), 1997 * ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investopedia
Investopedia is a financial media website headquartered in New York City. Founded in 1999, Investopedia provides investment dictionaries, advice, reviews, ratings, and comparisons of financial products such as securities accounts. Investopedia has more than 32,000 articles and reaches 20 million unique monthly viewers and posts paid advertisements as investing information. It is part of the Dotdash Meredith family of brands owned by IAC. Investopedia offers educational technology into day trading, asset management, foreign exchange markets, as well as financial educational courses. It also hosts a stock market simulator. Self-paced, online courses from expert instructors are available on Investopedia Academy. History Founding and early history Investopedia was founded in 1999 by Cory Wagner and Cory Janssen in Edmonton, Alberta. At the time, Janssen was a business student at the University of Alberta. Wagner focused on business development and research and development, w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
List Of Systemically Important Banks
Certain large banks are tracked and labelled by several authorities as Systemically Important Financial Institutions (SIFIs), depending on the scale and the degree of influence they hold in global and domestic financial markets. Since 2011, the Financial Stability Board (FSB) has published a list of global SIFIs (G-SIFIs), while individual countries also maintain their own lists of Domestic Systemically Important Banks (D-SIBs), also known in Europe as "national SIFIs" (N-SIFIs). In addition, special lists of regional systemically important banks (R-SIBs) also exist. The European Central Bank maintains a list of banks under its supervision known as the Single Supervisory Mechanism (SSM). Background In 2009, as a regulatory response to the revealed vulnerability of the banking sector in the financial crisis of 2007–08, and attempting to come up with a solution to solve the "too big to fail" interdependence between G-SIFIs and the economy of sovereign states, the Financial Sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Systemically Important Financial Institution
A systemically important financial institution (SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis. They are colloquially referred to as "too big to fail". As the financial crisis of 2007–2008 unfolded, the international community moved to protect the global financial system through preventing the failure of SIFIs, or, if one does fail, limiting the adverse effects of its failure. In November 2011, the Financial Stability Board (FSB) published a list of global systemically important financial institutions (G-SIFIs). Also in November 2010, the Basel Committee on Banking Supervision (BCBS) introduced new guidance (known as Basel III) that also specifically target SIFIs. The main focus of the Basel III guidance is to increase bank capital requirements and to introduce capital surcharges for G-SIFIs. However, some economists warned in 2012 that the tighter Basel III capital regulation, which is primarily based on risk ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stress Test (financial)
A stress test, in financial terminology, is an analysis or simulation designed to determine the ability of a given financial instrument or financial institution to deal with an economic crisis. Instead of doing financial projection on a "best estimate" basis, a company or its regulators may do stress testing where they look at how robust a financial instrument is in certain crashes, a form of scenario analysis. They may test the instrument under, for example, the following stresses: * What happens if unemployment rate rises to v% in a specific year? * What happens if equity markets crash by more than w% this year? * What happens if GDP falls by x% in a given year? * What happens if interest rates go up by at least y%? * What if half the instruments in the portfolio terminate their contracts in the fifth year? * What happens if oil prices rise by z%? * What happens if there is a polar vortex event in a particular region? This type of analysis has become increasingly widespread, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Basel III
Basel III is the third Basel Accord, a framework that sets international standards for bank capital adequacy, stress testing, and liquidity requirements. Augmenting and superseding parts of the Basel II standards, it was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing minimum capital requirements, holdings of high quality liquid assets, and decreasing bank leverage. Basel III was published by the Basel Committee on Banking Supervision in November 2010, and was scheduled to be introduced from 2013 until 2015; however, implementation was extended repeatedly to 1 January 2022 and then again until 1 January 2023, in the wake of the COVID-19 pandemic. The new standards that come into effect in January 2023, that is, the Fundamental Review of the Trading Book (FRTB) and the Basel 3.1: Finalising post-crisis reforms, are sometimes referred to as Basel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank Regulation
Bank regulation is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things. As regulation focusing on key factors in the financial markets, it forms one of the three components of financial law, the other two being case law and self-regulating market practices. Given the interconnectedness of the banking industry and the reliance that the national (and global) economy hold on banks, it is important for regulatory agencies to maintain control over the standardized practices of these institutions. Another relevant example for the interconnectedness is that the law of financial industries or financial law focuses on the financial (banking), capital, and insurance markets. Supporters of such regulation often base their arguments on the "too big to fail" notion. This holds that ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central Bank Of Brazil
The Central Bank of Brazil ( pt, Banco Central do Brasil) is Brazil's central bank. It was established on Thursday, 31 December 1964, a New Year's Eve. The bank is not linked to any ministry, currently being autonomous. Like other central banks, the Brazilian central bank is the principal monetary authority of the country. It received this authority when it was founded by three different institutions: the (SUMOC), the Bank of Brazil, Banco do Brasil (BB), and the . One of the main instruments of Brazil's monetary policy is the Banco Central do Brasil's overnight rate, called the SELIC rate. It is managed by Monetary Policy Committee (COPOM) of the bank. The bank is active in promoting financial inclusion policy and is a leading member of thAlliance for Financial Inclusion It is also one of the original 17 regulatory institutions to make specific national commitments to financial inclusion under the Maya Declaration. during the 2011 AFI Global Policy Forum, Global Policy Forum i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Comprehensive Capital Analysis And Review
Comprehensive Capital Analysis and Review (CCAR) is a United States regulatory framework introduced by the Federal Reserve in 2009 to assess, regulate, and supervise large banks and financial institutions – collectively referred to in the framework as bank holding companies (BHCs). It was an extension of the stress tests performed during the Financial crisis of 2007–2008. The assessment is conducted annually and comprises two related programs: # Comprehensive Capital Analysis and Review # Dodd–Frank Act supervisory stress testing The core part of the program assesses whether: # BHCs possess adequate capital. # The capital structure is stable given various stress-test scenarios. # Planned capital distributions, such as dividends and share repurchases, are viable and acceptable in relation to regulatory minimum capital requirements. The assessment is performed on both qualitative and quantitative bases. The Federal Reserve may order banks to suspend their planned capital ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
2009 Supervisory Capital Assessment Program (SCAP)
The Supervisory Capital Assessment Program, publicly described as the bank stress tests (even though a number of the companies that were subject to them were not banks), was an assessment of capital conducted by the Federal Reserve System and thrift supervisors to determine if the largest U.S. financial organizations had sufficient capital buffers to withstand the recession and the financial market turmoil. The test used two macroeconomic scenarios, one based on baseline conditions and the other with more pessimistic expectations, to plot a ' What If?' exploration into the banking situation in the rest of 2009 and into 2010.The Supervisory Capital Assessment Program: Design and Implementation |
