IMF Staff Country Reports

Germany: Technical Note on Stress Testing

Publication Date:

December 23, 2011

Electronic Access:

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Summary:

This note summarizes the stress tests undertaken for the German banking system as part of the Financial Sector Assessment Program (FSAP) update. Solvency tests for the German banking system assessed medium-term vulnerabilities under two adverse macroeconomic scenarios. The tests considered a variety of measures of soundness, and took into account funding costs, sovereign risk, upcoming changes in the regulatory rules, and behavioral changes of banks. The test results revealed that German banks are robust against many shocks, and that important vulnerabilities still remain.

Series:

Country Report No. 2011/371

Subject:

Banking Basel III Capital adequacy requirements Financial regulation and supervision Financial sector policy and analysis National accounts Personal income Stress testing Systemic risk