United Kingdom : Financial Sector Assessment Program-Stress Testing the Banking Sector-Technical Note

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

June 17, 2016

Electronic Access:

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

Summary:

This paper discusses how Financial Sector Assessment Program (FSAP) stress test assesses the resilience of the banking sector as a whole rather than the capital adequacy of individual institutions. The FSAP approach to stress testing is essentially macroprudential: it focuses on resilience of the broader financial system to adverse macro-financial conditions rather than on resilience of individual banks to specific shocks. This test ensures consistency in macroeconomic scenarios and metrics across firms to facilitate the assessment of the banking system as a whole. The stress test analysis is intended to help country authorities to identify key sources of systemic risk in the banking sector and inform macroprudential policies to enhance its resilience to absorb shocks.

Series:

Country Report No. 16/163

Subject:

English

Publication Date:

June 17, 2016

ISBN/ISSN:

9781484394120/1934-7685

Stock No:

1GBREA2016011

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

91

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