IMF Staff Country Reports

Guernsey: Financial Sector Assessment Program Update-Technical Note on Stress Testing: Banking and Insurance

Publication Date:

January 14, 2011

Electronic Access:

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Summary:

Stress testing (ST) was undertaken as part of the Guernsey Financial sector assessment Program (FSAP) Update in order to assess the resilience of the Guernsey financial system to a variety of potential strains. The approach taken was a simulation of the effect of a potential double-dip recession on solvency of Guernsey banks and insurance companies. The STs assess the sensitivity of banks and insurance companies to single-factor shocks to risk types affecting solvency and liquidity position of institutions. The mission recommends that future STs should be risk-based and that macroprudential analysis should be run on a regular basis.

Series:

Country Report No. 2011/004

Subject:

Banking Credit risk Financial regulation and supervision Financial sector policy and analysis Financial services Market risk Operational risk Stress testing Yield curve