{
  "title": "Guernsey: Financial Sector Assessment Program Update‑Technical Note on Stress Testing: Banking and Insurance",
  "publication": "IMF Staff Country Reports, January 14, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/guernsey-financial-sector-assessment-program-update-technical-note-on-stress-testing-banking-24545",
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  "summary": "Stress testing (ST) was undertaken as part of the Guernsey Financial sector assessment Program (FSAP) Update in order to assess the resilience of the Guernsey financial system to a variety of potential strains.",
  "sections": [
    {
      "heading": "Scope and objectives",
      "content": "- Stress testing (ST) was undertaken as part of the Guernsey Financial sector assessment Program (FSAP) Update to assess the resilience of the Guernsey financial system to a variety of potential strains.\n- The approach taken was a simulation of the effect of a potential double-dip recession on solvency of Guernsey banks and insurance companies.\n- The STs assess the sensitivity of banks and insurance companies to single-factor shocks to risk types affecting solvency and liquidity position of institutions."
    },
    {
      "heading": "Key findings and analytical focus",
      "content": "- The exercise focused on solvency and liquidity impacts under a simulated double-dip recession.\n- Tests were single-factor shock scenarios applied to risk types relevant to banks and insurers, including market risk, credit risk, liquidity risk, operational risk, and yield curve movements.\n- Subject areas listed: Banking; Credit risk; Financial regulation and supervision; Financial sector policy and analysis; Financial services; Market risk; Operational risk; Stress testing; Yield curve.\n- Keywords highlighting analytical elements: asset price risk; concentration risk analysis; CR; Credit risk; Global; interest rate; ISCR; liquidity risk; liquidity risk test sample; Market risk; market risk test; mortgage loan; No. bank; North America; Operational risk; parent bank; persistency risk; return on equity; risk type; Stress testing; test result; yield curve; Yield curve."
    },
    {
      "heading": "Policy recommendations and methodological guidance",
      "content": "- The mission recommends that future STs should be risk-based.\n- The mission recommends that macroprudential analysis should be run on a regular basis.\n\n---\n\n Content in this bundle\n\n- Executive Summary — Stress Testing of Guernsey Financial Sector\n  - Executive Summary — Stress Testing of Guernsey Financial Sector (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Executive Summary — Stress Testing of Guernsey Financial Sector (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: January 14, 2011",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781455213733.002",
    "The approach taken was a simulation of the effect of a potential double-dip recession on solvency of Guernsey banks and insurance companies.",
    "The STs assess the sensitivity of banks and insurance companies to single-factor shocks to risk types affecting solvency and liquidity position of institutions.",
    "The exercise focused on solvency and liquidity impacts under a simulated double-dip recession.",
    "Tests were single-factor shock scenarios applied to risk types relevant to banks and insurers, including market risk, credit risk, liquidity risk, operational risk, and yield curve movements.",
    "Subject areas listed: Banking; Credit risk; Financial regulation and supervision; Financial sector policy and analysis; Financial services; Market risk; Operational risk; Stress testing; Yield curve.",
    "Keywords highlighting analytical elements: asset price risk; concentration risk analysis; CR; Credit risk; Global; interest rate; ISCR; liquidity risk; liquidity risk test sample; Market risk; market risk test; mortgage loan; No. bank; North America; Operational risk; parent bank; persistency risk; return on equity; risk type; Stress testing; test result; yield curve; Yield curve.",
    "The mission recommends that future STs should be risk-based.",
    "The mission recommends that macroprudential analysis should be run on a regular basis.",
    "**Executive Summary — Stress Testing of Guernsey Financial Sector**"
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