Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing
IMF Staff Country Reports, February 1, 2023
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- Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing
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Bibliographic details
- Published: February 1, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231155.002
Overview and scope
- Publication date: February 1, 2023
- Series: Country Report No. 2023/061
- Pages: 61
- DOI: https://doi.org/10.5089/9798400231155.002
- ISBN: 9798400231155
- ISSN: 1934-7685
- The assessment is based on stress tests simulating the health of Finnish banks under a severe yet plausible adverse scenario.
Adverse scenario components
- Global and regional inflationary pressures
- Monetary policy tightness
- Financial market turmoil
- A major slowdown of economic activity
Coverage
- Institutions covered:
- Four significant institutions
- Three less significant institutions
- Coverage represents more than 93 percent of total banking assets
Stress test exercises performed
- Four types of stress test exercises:
- A top-down solvency stress test
- A liquidity stress test
- A wholesale funding cost stress test
- A contagion and interconnectedness stress test
- Focused on domestic banking interconnectedness
- Also focused on interconnectedness of the Finnish banking sector with cross-border counterparties
Key findings
- The Finnish banking system appears resilient to severe macrofinancial shocks.
- The Finnish banking system remains vulnerable to liquidity shocks.
Subjects and keywords (as listed)
- Subjects: Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, International organization, Liquidity requirements, Monetary policy, Solvency stress testing, Stress testing
- Keywords: Commercial banks, Credit risk, error correction Model, Global, interest income, liquidity coverage Analysis, Liquidity requirements, risk projection, sensitivity analysis result, Solvency stress testing, Stress testing
International Monetary Fund. Finland: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing, IMF Staff Country Reports 2023, 061 (2023).
Content in this bundle
- FINLAND: IMF Financial Sector Assessment Program