Stress tests
RBS falls short in latest Bank of England stress tests
Three banks show signs of “capital inadequacies” in the latest round of tests, with RBS forced to review its capital plan; Carney says global and domestic risk remains “elevated”, prompting the FPC to leave its buffer unchanged
Fed’s Tarullo: stress testing needs to evolve
Fed is planning to toughen its stress-testing framework with better alignment with regulation and incorporation of dynamic “amplification” effects – though more research is needed
Stress tests should consider wider range of resilience metrics – BoE article
Metrics including liquidity and funding resilience should be considered as stress tests become an important part of a central bank’s regulatory toolkit; current liquidity and funding stress scenarios are “less advanced”
Liquidity stress testing ‘essential’ – ECB supervisor
Supervisor warns conference that banks will need to shape up their internal liquidity adequacy assessment process responses for 2017
Italian banks feel more pressure from EBA stress-test results
Publication of the 2016 stress tests on European banks focuses attention on Italian banks in particular, but private sector recapitalisation plan takes some pressure off MPS
Banks coping with tougher environment – Omani stress tests
Central bank’s latest financial stability report says banks are well placed to weather shocks, as it builds regulatory capabilities and early warning indicators
EBA reveals guidelines for first stress tests on deposit guarantee schemes
European deposit guarantee schemes must carry out stress tests including checks on member banks’ customer data, response to stressed conditions and cross-border co-operation
Carney stresses bank resilience in face of large shocks
UK banks display resilience when threatened with Brexit-like shock, stress tests show; London "unlikely" to retain global financial centre status if Britain leaves EU, Carney says
Medium-sized banks are main contributors to systemic risk in Brazilian interbank market, paper says
Emergence of bank communities may act as triggers for systemic risk, stress test scenario shows; medium-sized banks carry non-negligible default probabilities
Coen looks to wider issues affecting bank resilience
Secretary general of Basel Committee highlights importance of corporate governance and culture, IT systems and stress tests for resilience and profitability
BoE toughens 2016 stress tests
GDP growth to hit a trough at -1.9%, unemployment to rise 4.5 percentage points and the level of GDP to fall by 4.3% in latest BoE stress tests; higher capital hurdles also mandated
Some analysts see stress tests losing effectiveness – Stournaras
Greek central bank governor raises questions over perception of stress tests; regulators’ models need to take more account of national differences, he argues
Tests find New Zealand banks ‘robust’ to dairy stress
Stress tests conducted by the Reserve Bank of New Zealand in late 2015 find five largest lenders to dairy sector can withstand further drops in payout and land values
BoE’s Brazier values flexibility with bank buffers
Alex Brazier says Bank of England will have a bias towards ‘acting early and gradually’ on capital buffers; will not look for “irrefutable proof” of bad events
Mexico’s stress tests reveal some institutions remain ‘vulnerable’ in extreme scenarios
Stress tests indicate that even in adverse scenarios banking sector remains sound; some banks and investment funds are vulnerable to extreme scenarios, including interest rate adjustments
EBA unveils 2016 stress test methodology
European Banking Authority presents the methodology for 2016 stress tests; no single capital adequacy level, but results will inform regulators’ assessments under SREP
Bulgaria launches asset quality review and stress tests
Bulgaria’s central bank will conduct an asset quality review of commercial banks, followed by stress tests; the move is in response to the 2014 failure of the country’s fourth-largest bank
Severely adverse scenario will now include ‘more severe downturn’ for US
Severely adverse scenario will now include ‘more severe downturn’ in the US economy; two new BHCs will take part, bringing total number to 33
Consultancy and advisory services provider of the year: BlackRock Solutions
A key partner to major central banks engaging in complex asset purchases, asset quality reviews, resolution mechanisms and strategic asset allocations
Malawi stress test shows three banks fall below Tier 1 requirement under minor credit shock
Latest stress tests show improved resilience but credit shocks remain greatest risk, Malawi’s latest financial stability report reveals
New Zealand economists stress-test dairy sector
An article published by the Reserve Bank of New Zealand finds banking system losses would still be ‘manageable’ under the worst-case scenario for milk prices and farm values
Norges Bank paper proposes linking CCP risk management to capital charges
Author recommends stress tests of CCPs to gauge interconnectedness, and proposes higher capital charges for CCPs with weaker risk management
Two UK banks fall short in BoE stress tests
RBS and Standard Chartered pass 'hurdle' rates but fall short on other capital requirements in 2015 Bank of England stress test; tests redesigned since 2014
EBA unveils plans for 2016 stress tests
European Banking Authority publishes draft guidelines for stress-testing systemically important banks; some 53 banks will be tested from February 2016