Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector
IMF Staff Country Reports, September 17, 2015
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- Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector
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Bibliographic details
- Published: September 17, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513586700.002
Key findings from the stress-testing exercise
- The Norwegian banking sector is generally well prepared to cope with possible external shocks.
- Imbalances have built up in recent years and could pose challenges.
- The stress-testing exercise included a comprehensive analysis of solvency and liquidity risks in the banking sector.
- Stress test results show that while the banking sector is highly resilient, it could experience challenges in case of severe macroeconomic shocks, as assumed in the adverse scenarios.
- The stress tests illustrate that the banking system remains vulnerable to liquidity risks, due in part to scarce liquidity buffers in Norwegian krone.
Analytical scope and focus areas
- Solvency risk analysis across the aggregate banking sector.
- Liquidity risk analysis, including FX liquidity position and NOK liquidity buffer assessment.
- Use of stress-testing tools to evaluate bank losses, asset haircuts, and asset portfolio vulnerabilities.
- Consideration of credit and credit risk, including mortgage company exposures and IRB model implications.
Subjects and keywords emphasized
- Banking, Commercial banks, Credit, Credit risk, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Financial stability assessment, Money, Stress testing
- Keywords featured in the analysis: aggregate banking sector assets; asset haircut; asset portfolio; bank loss; CR; Credit; credit risk; Financial Sector Assessment Program; Financial stability assessment; FSAP team; FX liquidity position; Global; IRB model; ISCR; liquidity risk; liquidity stress tests; mortgage company; Stress testing
Publication and document metadata (exact)
- Publication date: September 17, 2015
- Pages: 49
- Volume: 2015
- Issue: 258
- Series: Country Report No. 2015/258
- DOI: https://doi.org/10.5089/9781513586700.002
- Stock No: 1NOREA2015009
- ISBN: 9781513586700
- ISSN: 1934-7685
International Monetary Fund. Monetary and Capital Markets Department "Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector", IMF Staff Country Reports 2015, 258 (2015).