FSAP embedded in the financial stability framework, will be a combination of macro Prudential stress testing and micro Prudential stress testing, while carrying out the bottom-up and top- down
stress tests.
65bn worth of foreign assets to its parent company, Criteria Holding, in March, it could not quote the sale for its benefit in the
stress test.
Separately, the ECB conducted in parallel a
stress test of an additional 56 banks under its direct supervision, using the same methodology.
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.
Among them, nuclear
stress tests expose patients to radiation, which, with cumulative radiation doses, raises a person's risk of cancer.
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.
The IAEA mission came at a time when some local governments hosting nuclear power plants as well as experts have criticized the
stress tests as they do not reflect the findings of the government's investigation team, which is still probing the Fukushima nuclear crisis.
Given the uncertainty in the near future environment, now is the time to
stress test your P&L, or scenario test your annual plan or project.
The banking regulator has announced that it would launch a new round of
stress tests to assess property loans.
Stress tests are used by commercial financial institutions, regulators and central banks as a means of testing the resilience of institutions or the entire sector to adverse changes in the economic environment.
Stress tests are for example used to estimate capital needs under Pillar 2.
