Stress test

(redirected from stress tests)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
The first point to appreciate is that central bank stress tests are based on models of financial risk--models that predict potential losses and their associated probabilities--and these models are not so much useless as worse than useless.
In Cyprus, banks to undergo stress tests include the Bank of Cyprus, the Hellenic Bank, the Cooperative sector and the RCB (Russian Commercial Bank).
The NCUA's stress test would supersede a credit union's test results.
NISA earlier compiled a draft report endorsing the results of first-round stress tests that Kansai Electric Power Co.
Earlier in March energy ministers from the European Union reached an agreement to stress test all EU NPPs.
The model system structure is similar to that of most central banks that perform stress tests.
Stress tests have long been used in the CRE industry to assess the risks of individual transactions and CRE practitioners know that lease and financing structures make a large difference in the outcome of each stress.
Airbus confirmed that an A380 suffered wing damage during a stress test last week, according to press reports.
Among people whose stress tests had revealed some coronary-vessel disease but not a blockage serious enough to warrant surgery, the dyspnea patients were three times as likely to die of cardiac problems during the follow-up years as the angina patients were, the researchers report in the Nov.
These are the first study results to show the safety of stress tests in this population in the modern era of aggressive medical therapy," Dr.
Policy decisions by the Social Security Administration and the Blue Cross and Blue Shield Association, however, are encouraging more doctors to administer preventive stress tests to such patients.
The stress tests include environments similar to those used in the Federal Reserve's CCAR exercise, namely a Static State scenario, Adverse scenario and Severely Adverse scenario.