France: Financial Sector Assessment Program—Technical Note on Stress Testing the Banking Sector
IMF Staff Country Reports, July 1, 2013
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- France: Financial Sector Assessment Program—Technical Note on Stress Testing the Banking Sector
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Bibliographic details
- Published: July 1, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616358556.002
Key findings from stress testing
- Stress testing analysis was used to capture the most salient risks for banks.
- The findings support the current focus of Autorité de Contrôle Prudentiel (ACP) to require banks to build up adequate capital and liquidity buffers.
- The tests suggest that the banking system would be able to meet regulatory ratios under most scenarios.
- Solvency stress tests indicate that banks could cope with deterioration in the economic environment while phasing in capital requirements under Capital Requirements Directive IV.
Policy implications and recommendations
- Require banks to build up adequate capital buffers.
- Require banks to build up adequate liquidity buffers.
- Continue phasing in capital requirements under Capital Requirements Directive IV to strengthen resilience.
Scope, subjects, and technical focus
- Subjects: Asset and liability management; Banking; Commercial banks; Financial institutions; Financial sector policy and analysis; Liquidity; Liquidity stress testing; Solvency stress testing; Stress testing.
- Keywords: access to ECB facility; bank assets; bank capital projection; bank solvency stress test result; banking groups; banks BU; Commercial banks; CR; ECB liquidity; Global; ISCR; Liquidity; Liquidity stress testing; Solvency stress testing; Stress testing.
Content in this bundle
- _cr13185 - Executive Summary