The Bank of England stress tests were seen as tough enough to be credible, but still drew criticism from some quarters.
The top five clearing houses in the US have passed their stress tests, according to the Commodity Futures Trading Commission.
When it comes to stress testing, spreadsheets have emerged as a potential source for proliferating bad data, prompting banks to search for other often more automated solutions. By Henry Umney, vice president of sales at governance specialist ClusterSeven
The stress tests of Europe’s banks were deemed by many to have been a success demonstrating that the sector is now in better health than two years ago. However, concerns remain over the banks that were omitted from the exercise and whether the tests were stringent enough.
Stress tests have been dismissed by a prominent think tank as creating a dangerous false sense of security. In what may be a case of realising their limitations, they do nonetheless provide one very valuable service.
Shadow banks are causing growing concern among supervisors and a model based on Granger causality from Moody’s Analytics shows that in the US at least, non-bank financials may indeed be a growing source of systemic risk
Big US banks get green light to distribute cash to shareholders following stress tests.
Senior Bank of England official argues for global stress tests for clearing houses
Conduct risk is a new focus, but the adverse macro scenario seems unlikely to produce information that might be useful to management.
The US 2016 stress test scenarios suggest a switch of focus from monitoring banks’ data management to more groundbreaking risk analysis.