United States: Financial Sector Assessment Program-Stress Testing-Technical Notes
IMF Staff Country Reports, July 7, 2015
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Bibliographic details
- Published: July 7, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513591506.002
Overview
- This Technical Note discusses key findings of stress testing on the United States under the Financial Sector Assessment Program.
- Several stress tests were used to quantify the potential impacts of risks and vulnerabilities in banking and non-banking sectors.
Key findings from stress tests
- The stress tests run by the authorities and by companies under the Dodd-Frank Act (DFA) suggest that most large bank holding companies (BHCs) are resilient to shocks similar to the last crisis.
- For BHCs, the IMF staff’s solvency stress tests over the initial stressed period are largely in line with the DFA stress testing results.
- The tests suggest that the system is generally robust, although some BHCs would fall below the hurdle rate in the stressed environment.
Scope and analytical approach
- Multiple stress tests were applied to capture potential impacts across banking and non-banking sectors.
- Comparative assessment: IMF staff solvency stress tests versus DFA stress testing conducted by authorities and firms.
Subjects and keywords captured on the page
- Subjects: Credit, Financial institutions, Financial sector policy and analysis, Insurance companies, Loans, Money, National accounts, Personal income, Stress testing
- Keywords: Asia and Pacific, banking sector, BHC assets, CR, Credit, credit risk, exchange rate, federal funds rate, financial institution, financial system, Global, Insurance companies, ISCR, Loans, mortgage rate, mutual fund, net income, Personal income, real GDP, sovereign bond, Stress testing