Argentina: Financial Sector Assessment Program-Financial Sector Stability-Technical Note
IMF Staff Country Reports, February 29, 2016
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- Argentina: Financial Sector Assessment Program-Financial Sector Stability-Technical Note
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Bibliographic details
- Published: February 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498391337.002
Overview
- This paper provides technical analysis and detailed information underpinning the Financial Sector Assessment Program in Argentina.
- The implementation of stress tests is conceptually challenging in the Argentinean context, and the results must be interpreted with a high degree of caution.
- The stress tests examined the resilience of the Argentine banking system to solvency, liquidity, and contagion risks.
Stress-testing approach and caveats
- Focus: solvency, liquidity, and contagion risk assessments for the Argentine banking system.
- Methodological note: implementation of stress tests in Argentina is conceptually challenging; results require a high degree of caution in interpretation.
Key findings
- Most banks are in a position to withstand substantial levels of stress while still phasing in capital requirements under Basel II.
- Credit risk is identified as the most important vulnerability.
- Banks appeared resilient to market risk but less so to sovereign risks.
Subjects and keywords (as reported)
- Subjects: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Financial services, Insurance companies, Liquidity stress testing, Real interest rates, Stress testing
- Keywords: a number of bank, bank capitalization, bank loss, bank portfolio, bank solvency stress test result, bank solvency stress tests, banking system, Commercial banks, CR, credit loss, Global, Insurance companies, ISCR, la República Argentina, Liquidity stress testing, money market, Real interest rates, Stress testing
Argentina: Financial Sector Assessment Program-Financial Sector Stability-Technical Note — February 29, 2016