Portugal: Financial Sector Assessment Program: Technical Note: Stress Testing

Publication Date:

January 30, 2007

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This technical note explains stress testing for Portugal’s financial sector. A core part of the banking stress tests was the bottom-up exercise implemented by individual institutions. The bottom-up stress tests focus only on the impact of expected losses on indicators of profitability and capitalization. The results are presented in terms of the actual solvency levels before and after the shock, allowing for an assessment of the capacity of banks to withstand the shocks.

Series:

Country Report No. 2007/034

Subject:

English

Publication Date:

January 30, 2007

ISBN/ISSN:

9781451832266/1934-7685

Stock No:

1PRTEA2007004

Pages:

49

Please address any questions about this title to publications@imf.org