Fed urged to introduce annual high-rate stress tests
Results of debut scenario were reassuring, but regulators cannot lower their guard
Experts broadly agree the US Federal Reserve’s inaugural stress test of interest rate risk was a success. But to get the full benefits, it shouldn’t just be a one-off exploratory scenario.
“It is hard to guess how economic conditions will change in the next six months, and how they would influence the choice of scenarios,” says Til Schuermann, a partner at Oliver Wyman who previously worked at the New York Fed developing the original post-2008 stress-testing regime. “But I do think it is
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
Lebanese central bank urged to allow more cash withdrawals
Depositors unable to draw on savings as war with Israel continues
Vix spike in August not driven by actual volatility – BIS
Latest bulletin explains how widening bid-ask spreads drove up the index
IFC to boost local currency financing in Nigeria
Central bank signs agreement intended to unlock more than $1 billion of funding in coming years
IMF lowers growth projection for Middle East and North Africa
Fund says conflict and cuts in oil production are main factors behind its revised forecast
Emerging markets resilient amid global shift, governors tell panel
Smaller economies better placed to intervene during crises, say central bank heads
Central banks need to monitor non-bank risks more – Bailey
Governor expects BoE to release results of stress exercises on sector by end of year
Yemen could resume publishing fiscal data in ‘near future’
Fund continues its capacity-building efforts in “fragile” state, despite challenges
Basel Committee chair warns against easing regulations
Short-term gains will be offset by long-term pain, says Erik Thedéen