Guernsey : Financial Sector Assessment Program Update-Technical Note on Stress Testing: Banking and Insurance

Publication Date: January 14, 2011
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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. 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 mission recommends that future STs should be risk-based and that macroprudential analysis should be run on a regular basis.
Series: Country Report No. 11/4
Subject(s): Banking sector | Credit risk | Financial institutions | Financial Sector Assessment Program | Financial soundness indicators | Risk management

Publication Date: January 14, 2011
ISBN/ISSN: 9781455213733/1934-7685 Format: Paper
Stock No: 1GGYEA2011004 Pages: 36
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