United States: Financial Sector Assessment Program-Technical Note-Risk Analysis and Stress Testing the Financial Sector

IMF Staff Country Reports, August 10, 2020

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The U.S. financial system is described as very large, well-diversified, and home to numerous financial institutions which are significant at a global scale.
The systemic risk assessment (including stress testing) of this FSAP reflects the highly diversified nature of the U.S. financial system and focuses on:
- banks,
- mutual and money market funds,
- insurance companies,
- cross-institutional and cross-sectoral linkages and exposures.

Eight Global Systemically Important Banks (G-SIBs) are incorporated in the U.S.
Several other large financial institutions are significant, including asset managers, insurers, and money market funds.
Assets of the financial system amounted to about US$100 trillion at end-2019 and accounted for 500 percent of GDP.
While the eight G-SIBs dominate the U.S. banking landscape, banking system assets represent only about 22 percent of total financial system assets.

The FSAP’s systemic risk assessment and stress testing are tailored to the U.S. system’s high degree of diversification and large nonbank sectors.
Emphasis is placed on cross-institutional and cross-sectoral linkages and exposures in addition to institution-level vulnerabilities.

Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Insurance companies, Loans, Mutual funds, Stress testing
Keywords: banking sector, central bank, Commercial banks, consumer credit, CR, credit card, federal funds, financial system, fixed income, Global, Insurance companies, ISCR, Loans, mortgage loan, mutual fund, Mutual funds, sensitivity analysis, Stress testing, student loan, U.S. dollar