Stress Testing of Financial Systems : An Overview of Issues, Methodologies, and FSAP Experiences

Author/Editor:

Maria Soledad Martinez Peria ; Giovanni Majnoni ; Matthew T Jones ; Winfrid Blaschke

Publication Date:

June 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper has three objectives. After a general introduction to some of the concepts and basic techniques of stress testing, the paper gives an overview of some of the conceptual issues involved in evaluating risks at the aggregated level of financial systems. Second, this study provides a basic framework and toolkit for conducting stress tests. Finally, the paper reviews some of the stress-testing analyses conducted in the context of the Financial Sector Assessment Program (FSAP) and suggests simplified approaches to deal with situations where the quantity and quality of the data is less than ideal.

Series:

Working Paper No. 01/88

Subject:

English

Publication Date:

June 1, 2001

ISBN/ISSN:

9781451851168/1018-5941

Stock No:

WPIEA0882001

Format:

Paper

Pages:

56

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