Stress testing regimes have come a long way since the 2007-9 global financial crisis, however, they are still evolving with regulators on both sides of the Atlantic signalling potential changes
Stress-Testing
Fed consults over simplifying its stress testing regime
The Fed is consulting on a number of proposals for the US stress testing regime, which include raising the threshold on bank own stress tests and to move the biggest banks on to a two-year cycle
More detail on US stress testing regime to emerge in early 2019
Tweaks to the US stress testing regime means implementation is likely to be delayed, following industry feedback suggesting more refinements are needed. Justin Pugsley reports.
UK banks perform well in Bank of England stress tests
According to the Bank of England’s latest stress tests, the UK’s seven largest lenders could withstand a downturn more severe than the one a decade ago or a disorderly Brexit and still be able to keep credit flowing to the economy
Refinement needed on ESMA’s proposed approach to stress testing MMFs
Calls for more refinement around ESMA stress testing regime for money market funds
Stress testing comes of age as Basel Committee issues update
Basel Committee issues nine principles for stress testing banks reflecting the growing importance of the exercise for detecting emerging vulnerabilities
Bank of England to publish stress test results on December 5
Bank of England to publish stress test results for seven systemically important lenders on December 5
Major EU lenders pass stress tests, but with some surprises
Tough stress tests show that Europe’s largest lenders can stomach considerable economic pain with the most surprising outcome being the poor performance of two UK banks
ESMA consults on internal stress testing guidelines for money market funds
ESMA is consulting on a set of guidelines for the internal stress testing of money market funds covering areas such as liquidity and credit risk
EU bank stress tests’ adverse scenario may not be the most plausible
Two academics argue that the EU 2018 stress tests are not using the most plausible adverse scenarios and complain of a lack of transparency
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