Stress test


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Stress test

Tests conducted by federal supervisory agencies in early 2009 to estimate the range of possible future losses among US banks and determine if they have sufficient capital buffers to withstand the impact of a severe recession. The stress test involved two scenarios, a base scenario and a worst case scenario.

Stress Test

A simulation measuring the capital adequacy of a bank. A government conducts a stress test to attempt to ensure that a bank can remain solvent in a crisis. The term came to prominence in 2009 and 2010 when the U.S. Treasury conducted stress tests of bailed out banks before it allowed them to repay Treasury loans.
References in periodicals archive ?
ESMA has also published a Press Release and a Question and Answers (Q&A) document regarding its second CCP stress test.
Since the financial crisis of 2008, the FSAP stress test has been focused on the stability of the financial system.
Separately, the ECB conducted in parallel a stress test of an additional 56 banks under its direct supervision, using the same methodology.
c) To provide stylised numerical examples of Islamic financial institution stress tests under different shock scenarios.
Critics simply said that the stress test was too weak.
In a nuclear stress test, the doctor injects into your bloodstream small amounts of a radioactive tracer that is viewable with a special camera to locate areas of your heart muscle where blood flow is reduced.
This error is said to relate solely to the EBA stress test and the bank's reported CET1 regulatory capital ratio as of 30 September 2014 of 10.
Regardless of the results of the stress tests, all nuclear storage facilities in Germany are set to have a wall built around them as an extra security measure against possible terror attacks.
The NCUA's stress test would supersede a credit union's test results.
The ACLI is also concerned about public disclosure of stress test results of a nonbank-covered company's (i.
It appears that primary care physicians are concerned that if they order an exercise stress test and a patient can't complete it, they'll have to reorder the test-this time using pharmacologic stress-with the attendant inconvenience and delay, said Dr.
Global Banking News-April 21, 2011--Chinese banking regulator to stress test mortgages(C)2011 ENPublishing - http://www.