{
  "title": "Australia: Financial Sector Assessment Program-Technical Note-Stress Testing the Banking Sector and Systemic Risk Analysis",
  "publication": "IMF Staff Country Reports, February 21, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-technical-note-stress-testing-the-banking-46608",
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  "summary": "This technical note describes the financial stability analysis undertaken as part of the Financial Sector Assessment Program that primarily focuses on assessing the resilience of the banking system.",
  "sections": [
    {
      "heading": "Overview and Purpose",
      "content": "- Technical note describes the financial stability analysis undertaken as part of the Financial Sector Assessment Program.\n- Primary focus: assessing the resilience of the banking system."
    },
    {
      "heading": "Key Findings: Solvency, Liquidity, and Systemic Risk",
      "content": "- Bank solvency appears relatively resilient to stress.\n- Liquidity stress tests reveal some vulnerabilities given continued reliance on wholesale funding.\n- Systemic risk analysis reveals a low degree of interconnectedness between the largest Australian banks and their global counterparts.\n- Cross-border and interbank exposures data corroborate:\n  - the systemic importance of the four largest banks, and\n  - the view that the Australian banks are particularly vulnerable to external funding shocks.\n- Cross-border analysis using country-level and individual bank-level supervisory data corroborates the view that the Australian banks are particularly vulnerable to external funding shocks given their dependence on wholesale funding from overseas."
    },
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      "heading": "Policy Recommendations and Analytical Needs",
      "content": "- Additional investment in data and analytical tools would strengthen financial supervision and systemic risk oversight."
    },
    {
      "heading": "Subject Tags and Keywords (as listed)",
      "content": "- Subject: Banking, Commercial banks, Currencies, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Liquidity requirements, Money, Mortgages, Stress testing\n- Keywords: Australian bank, bank bill, bank capital level, bank network analysis, bank-NFC linkage, banks' funding maturity profile, benchmark bank, capital level, cash inflow, Commercial banks, Consolidated Cross-Border Claims, CR, Currencies, funding maturity profile, funding shock, Global, ISCR, Liquidity requirements, long-term debt, mid-sized bank, Mortgages, network analysis, off-balance sheet assets, risk analysis, sensitivity analysis, Stress testing, wholesale funding\n\n---\n\n Content in this bundle\n\n- 1ausea2019004\n  - 1ausea2019004 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1ausea2019004 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 21, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484398920.002",
    "Technical note describes the financial stability analysis undertaken as part of the Financial Sector Assessment Program.",
    "Primary focus: assessing the resilience of the banking system.",
    "Bank solvency appears relatively resilient to stress.",
    "Liquidity stress tests reveal some vulnerabilities given continued reliance on wholesale funding.",
    "Systemic risk analysis reveals a low degree of interconnectedness between the largest Australian banks and their global counterparts.",
    "Cross-border and interbank exposures data corroborate:",
    "Cross-border analysis using country-level and individual bank-level supervisory data corroborates the view that the Australian banks are particularly vulnerable to external funding shocks given their dependence on wholesale funding from overseas.",
    "Additional investment in data and analytical tools would strengthen financial supervision and systemic risk oversight.",
    "Subject: Banking, Commercial banks, Currencies, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Liquidity requirements, Money, Mortgages, Stress testing",
    "Keywords: Australian bank, bank bill, bank capital level, bank network analysis, bank-NFC linkage, banks' funding maturity profile, benchmark bank, capital level, cash inflow, Commercial banks, Consolidated Cross-Border Claims, CR, Currencies, funding maturity profile, funding shock, Global, ISCR, Liquidity requirements, long-term debt, mid-sized bank, Mortgages, network analysis, off-balance sheet assets, risk analysis, sensitivity analysis, Stress testing, wholesale funding",
    "**1ausea2019004**"
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