Stress Testing at the IMF
IMF Working Papers, September 1, 2008
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Bibliographic details
- Authors: Mark Swinburne, Stéphanie Marie Stolz, Marina Moretti
- Published: September 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870640.001
Summary
- For almost a decade, the IMF has been using stress tests to identify vulnerabilities across institutions that could undermine the stability of a country's financial system.
- This working paper focuses on the IMF's experience with stress testing in the Financial Sector Assessment Program (FSAP).
- The paper provides background on the nature of an FSAP and the role of macro stress testing within it.
- It describes how the methodology of stress testing in FSAPs has been evolving and what are fairly common approaches now being used.
- It discusses the main strengths and challenges for future development of macro stress testing in FSAPs.
- It provides an overview of stress testing practice in European FSAPs.
Role of Stress Testing in the FSAP
- Identifies vulnerabilities across institutions that could undermine financial system stability.
- Situates macro stress testing as a core component within FSAP assessments.
Methodology Evolution and Common Approaches
- Describes evolving methodologies used in FSAP stress testing.
- Summarizes fairly common approaches now being used in FSAPs (specific methodological details are described in the working paper).
Strengths and Challenges for Future Development
- Discusses the main strengths of macro stress testing as applied in FSAPs.
- Discusses challenges for future development of macro stress testing in FSAPs.
Overview of Practice in European FSAPs
- Provides an overview of stress testing practice in European FSAPs.
Content in this bundle
- _wp08206 - References