Systemwide Stress Test at the IMF: Integrating Nonbank Financial Intermediary Risks
IMF Working Papers, August 14, 2026
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- Systemwide Stress Test at the IMF: Integrating Nonbank Financial Intermediary Risks
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Bibliographic details
- Authors: Hiroko Oura, Guillaume Arnould, Xiaodan Ding, Pierpaolo Grippa, Marco Gross, Dimitrios Laliotis, Mindaugas Leika, Caterina Lepore, Elisa Letizia, Laura Valderrama, Yuchen Zhang
- Published: August 14, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229054980.001
Overview and purpose
- Presents the IMF’s systemwide stress testing approaches covering multiple financial sub-sectors and their clients.
- Objective: identify cross-sector and cross-border amplification channels and enhance policy responses, aligning with international financial stability community priorities.
- Reviews classic and modern theories and operational methods for analyzing systemic liquidity risks that can impact numerous institutions simultaneously.
Transmission channels and mechanisms analyzed
- Runs and redemptions.
- Margin and collateral calls.
- Fire sales and price dynamics.
- Disruptions in core markets.
- Spillovers among banks, nonbank financial institutions (NBFIs), and market-based finance.
Core IMF tools described
- Excel-based flow-of-funds framework.
- Investment fund liquidity analysis with fire sale and market-impact dynamics.
Applications and operational use
- Application and enhancement of the two base tools within Financial Sector Assessment Programs (FSAPs) across various countries.
Key findings and emphases
- Systemwide stress testing covering multiple sub-sectors and clients is crucial to detect cross-sector and cross-border amplification.
- Integrating market-impact dynamics and liquidity analysis is essential for assessing investment fund contagion and broader NBFI risks.
- Combining theoretical literature with operational modeling supports more effective identification of systemic liquidity risks.
Subjects and keywords (as listed)
- Subjects: Asset and liability management, Financial institutions, Financial sector policy and analysis, Financial sector stability, Liquidity, Mutual funds, Nonbank financial institutions, Stress testing.
- Keywords: capital flow, coverage ratio, Financial sector stability, financial stability, Global, IMF working papers, interconnectedness, investment funds liquidity distress, Liquidity, liquidity analysis, market-impact dynamics, Mutual funds, NBFI, Nonbank financial institutions, stress test, Stress testing, systemwide.
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- Working Paper