{
  "title": "Ireland: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System",
  "publication": "IMF Staff Country Reports, September 29, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/ireland-financial-sector-assessment-program-technical-note-stress-testing-the-banking-system-44308",
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  "summary": "This Technical Note discusses the results of the stress testing carried out to examine the banking system in Ireland. These tests examined the resilience of the Irish banking system to solvency, liquidity, and contagion risks.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The Technical Note discusses the results of stress testing carried out to examine the banking system in Ireland.\n- Tests examined the resilience of the Irish banking system to solvency, liquidity, and contagion risks.\n- Results revealed several sources of vulnerability, although these remain manageable at the macro level."
    },
    {
      "heading": "Major Findings — Solvency, Liquidity, and Contagion",
      "content": "- Solvency risks: Stress testing assessed banks' capacity to withstand adverse credit and market shocks (summarized as solvency risks).\n- Liquidity risks: Global liquidity stress tests reveal that some banks in the system would be exposed to liquidity risks in the event of large deposit withdrawals, under a more severe scenario than the Basel III Liquidity Coverage Ratio metrics.\n- Contagion risks: Tests included contagion channels to evaluate system-wide amplification of bank-specific shocks.\n- Overall assessment: Vulnerabilities identified by the tests remain manageable at the macro level."
    },
    {
      "heading": "Policy Implications and Considerations",
      "content": "- Strengthen liquidity buffers for banks that are exposed under severe outflow scenarios beyond Basel III LCR metrics.\n- Ensure availability and access to counterbalancing capacity to cover net outflows across all maturity buckets.\n- Monitor contagion channels and interconnections that could amplify solvency or liquidity shocks system-wide.\n- Continue macroprudential surveillance given identified vulnerabilities that are manageable but present."
    },
    {
      "heading": "Key Statistics and Publication Details",
      "content": "- Pages: 71\n- Volume: 2016\n- Issue: 315\n- Series: Country Report No. 2016/315\n- DOI: https://doi.org/10.5089/9781475542226.002\n- Stock No: 1IRLEA2016009\n- ISBN: 9781475542226\n- ISSN: 1934-7685\n- Publication date on landing page: September 29, 2016\n\nInternational Monetary Fund. Monetary and Capital Markets Department \"Ireland: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System\", IMF Staff Country Reports 2016, 315 (2016).\n\n---\n\n Content in this bundle\n\n- Executive Summary\n  - Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: September 29, 2016",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781475542226.002",
    "The Technical Note discusses the results of stress testing carried out to examine the banking system in Ireland.",
    "Tests examined the resilience of the Irish banking system to solvency, liquidity, and contagion risks.",
    "Results revealed several sources of vulnerability, although these remain manageable at the macro level.",
    "Solvency risks: Stress testing assessed banks' capacity to withstand adverse credit and market shocks (summarized as solvency risks).",
    "Liquidity risks: Global liquidity stress tests reveal that some banks in the system would be exposed to liquidity risks in the event of large deposit withdrawals, under a more severe scenario than the Basel III Liquidity Coverage Ratio metrics.",
    "Contagion risks: Tests included contagion channels to evaluate system-wide amplification of bank-specific shocks.",
    "Overall assessment: Vulnerabilities identified by the tests remain manageable at the macro level.",
    "Strengthen liquidity buffers for banks that are exposed under severe outflow scenarios beyond Basel III LCR metrics.",
    "Ensure availability and access to counterbalancing capacity to cover net outflows across all maturity buckets.",
    "Monitor contagion channels and interconnections that could amplify solvency or liquidity shocks system-wide.",
    "Continue macroprudential surveillance given identified vulnerabilities that are manageable but present.",
    "Pages: 71",
    "Volume: 2016",
    "Issue: 315",
    "Series: Country Report No. 2016/315",
    "DOI: https://doi.org/10.5089/9781475542226.002",
    "Stock No: 1IRLEA2016009",
    "ISBN: 9781475542226",
    "ISSN: 1934-7685",
    "Publication date on landing page: September 29, 2016",
    "**Executive Summary**"
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