In recent years, stress tests by the US Federal Reserve have been relatively incident free, but this year’s exercise has run into sharp criticism in some quarters including from a former Fed member
Stress-Testing
Managing climate risk demands fresh thinking on stress tests
Risks related to climate change are increasingly being taken seriously by regulators and banks, but the modeling around these risks is complex and is still under development
APRA to scrutinise bank climate change efforts more deeply
Banks in Australia will have to stress test their resilience to financial risks associated with climate change, the Australian Prudential Regulation Authority (APRA) said in a letter.
EBA’s stress test overhaul given the cold shoulder
Proposals put forward by the EBA to modernise its stress testing framework have met with disapproval by banks arguing that they would deliver few benefits
Fed approves stress capital buffer with some changes
The stress capital buffer (SCB), a simpler capital framework for banks, has been approved by the US Federal Reserve Board and is broadly similar to proposals made in April 2018 with some changes made to reflect feedback.
EU banks to be subject to toughest stress test yet
Banks in the EU will be subject to the most demanding stress tests to date to see how they would stand up to very low interest rates, growing trade tensions and a disorderly departure from the union by the UK.
US stress tests to include scenario on corporate debt problems
The harshest scenario in the 2020 US Comprehensive Capital Analysis and Review (CCAR) and stress tests will include a severe global recession, stressed corporate debt and commercial real estate markets, and leveraged loan pressures.
Bank of England uses climate change scenarios for stress test
Proposals by the Bank of England for stress testing the effects of climate change on the financial system places the issue front and centre for UK regulators and financial firms
Big UK banks pass stress test, but told to raise countercyclical buffer
The latest stress tests from the Bank of England showed that the UK’s seven largest lenders could comfortably manage a deep domestic recession, a global downturn and a disorderly exit from the EU.
Bank of England to stress-test financial firms for climate change
The Bank of England plans to stress test how the financial system would stand up to various climate pathways, making it the first central bank to do so.
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