Mark Turner

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

Mixed results for banks following toughest US stress test so far

The 35 banks participating in this year’s US stress tests were hit by theoretical rising credit card loans going bad and the real effects of recent accounting changes while some of the banks' capital plans were challenged.

US G-SIBs unlikely to meaningfully benefit from proposed changes to CCAR

Proposed changes to CCAR are unlikely to provide much benefit for US US globally systemically important banks.

Ukraine flag

Ukraine uses stress testing to help clean up banking system

Ukraine has experienced severe problems with its banking sector over the past few years. As part of the clean-up, the National Bank of Ukraine has leaned increasingly on stress testing to identify bad lending and to drive improvements in risk management practices. By Justin Pugsley.

EU CCPs shown to be resilient to multiple clearing member defaults

EU central counterparty clearing houses shown to be resilient under second stress test, which also included a liquidity component 

Foreign banks to draw up new resolution plans by year end

The Fed and FDIC have written to 19 foreign banks with US operations asking them to produce new resolution plans for their US units