Ireland: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System

September 29, 2016

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Format: Chicago

Ireland: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System, (USA: International Monetary Fund, 2016) accessed September 18, 2024

Summary

This Technical Note discusses the results of the stress testing carried out to examine the banking system in Ireland. These tests examined the resilience of the Irish banking system to solvency, liquidity, and contagion risks. The results revealed several sources of vulnerability, although these remain manageable at the macro level. The global liquidity stress tests reveal that some banks in the system would be exposed to liquidity risks in the event of large deposit withdrawals, under a more severe scenario than the Basel III Liquidity Coverage Ratio metrics. By contrast, additional counterbalancing capacity would allow banks to cope with net outflows in every maturity bucket.

Subject: Banking, Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Liquidity stress testing, Stress testing

Keywords: A number of bank, Balance sheet, Central bank of Ireland, Commercial banks, CR, Credit risk, Exchange rate, Financial Sector Assessment Program, Financial system, Funding cost, Global, Hurdle rate, Interest rate, ISCR, Liquidity stress testing, Market share, Pension scheme balance, Stress test result, Stress testing

Publication Details

Pages:

71
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/315
Stock No:

1IRLEA2016009
ISBN:

9781475542226
ISSN:

1934-7685

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