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List of bank stress tests

This list covers formal bank stress testing programs, as implemented by major regulators worldwide. It does not cover bank proprietary, internal testing programs.

A bank stress test is an analysis of a bank's ability to endure a hypothetical adverse economic scenario. Stress tests became widely used after the 2008 financial crisis.[1]

Example

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For example, in the U.S. in 2012, an adverse scenario used in stress testing was all of the following:[2]

  • Unemployment at 13 percent
  • 50 percent drop in equity prices
  • 21 percent decline in housing prices.

Asia

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Europe

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Americas

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  • Federal Reserve System
    • 2009 Supervisory Capital Assessment Program (SCAP)
    • Note: there was no 2010 stress test in the USA
    • Comprehensive Capital Analysis and Review (CCAR)
      • 2011[16]
      • 2012[17]
      • 2013[18]
        • A private conference call was held with banks to notify them of a new, two part information release by the Fed[19]
          • March 7, 2013 – Banks will be privately notified of the Fed's tentative decision on capital distribution plans.
          • Banks receiving a "no" will then have a 48 hours to privately resubmit to the Fed a reduced a distribution plan.
          • March 14, 2013 – the Fed will publicly disclose final decisions on requests for capital distributions
          • The week of private negotiations between the bank and the Fed will allow banks to adjust their request downward to what the Fed will allow. This was specifically designed to allow banks to avoid "embarrassing capital-plan rejections"
          • Shareholder lawsuits are expected if banks fail to disclose capital distribution plans and Fed rejections (even if labeled "informal") as the majority of shareholders and prospective shareholders regard bank dividend and share buyback plans, and limits, to be extremely material information.
          • Banks may not follow Fed advice and release capital distribution plans in advance of March 14.[20]
      • 2014[21][22]
      • 2015[23][24]
      • 2016
      • 2017
      • 2018[25][26]
    • Dodd-Frank Act Stress Tests
      • 2013-2018
  • Central Bank of Brazil (Portuguese: Banco Central do Brasil)

See also

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References

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  1. ^ Segal, Troy. "Bank Stress Test". Investopedia. Retrieved 2021-02-07.
  2. ^ "2012 Stress Test Release". Federal Reserve. Retrieved 23 February 2013.
  3. ^ "Financial System Stability Assessment Update (FSAP) 2011 and 2012" (PDF). International Monetary Fund. Retrieved 23 February 2013.
  4. ^ "The CBRC held 2012 Large Bank Supervisory Work Conference". China Banking Regulatory Commission. Retrieved 23 February 2013.
  5. ^ Australia, corporateName= APRA Australian Prudential Regulation Authority; jurisdiction=Commonwealth of. "Seeking strength in adversity: Lessons from APRA's 2014 stress test on Australia's largest banks". www.apra.gov.au. Retrieved 2016-01-18.{{cite web}}: CS1 maint: multiple names: authors list (link)
  6. ^ "Stress tests of the New Zealand banking system". Reserve Bank of New Zealand. Retrieved 23 September 2017.
  7. ^ "Stress and scenario testing CP08/24" (PDF). Financial Services Authority. Retrieved 23 February 2013.
  8. ^ "Stress and Scenario Testing Feedback on CP08/24" (PDF). Financial Services Authority. Retrieved 23 February 2013.
  9. ^ "Stress Testing | Bank of England". www.bankofengland.co.uk. Retrieved 2022-03-09.
  10. ^ "2009 - European Banking Authority". eba.europa.eu.
  11. ^ "EU-wide stress testing 2010". European Banking Authority.
  12. ^ "EU-wide stress testing 2011". European Banking Authority.
  13. ^ "EU-wide stress testing 2014". European Banking Authority.
  14. ^ "EU-wide stress testing 2016". European Banking Authority. Retrieved 11 November 2015.
  15. ^ "EU-wide stress testing 2018".
  16. ^ "2011 Comprehensive Capital Assessment Review (CCAR)" (PDF). Federal Reserve. 18 March 2011.
  17. ^ "2012 Comprehensive Capital Assessment Review (CCAR)". Federal Reserve. 13 March 2012.
  18. ^ "2013 Comprehensive Capital Assessment Review (CCAR)". Federal Reserve. 14 March 2013.
  19. ^ "Fed, Banks Clashed Over Stress Test Results Release". Dow Jones Newswire. March 5, 2013. Retrieved 7 March 2013.
  20. ^ "Banks Said to Weigh Defying Fed With Dividend Disclosures". Bloomberg. 7 March 2013. Retrieved 7 March 2013.
  21. ^ "Stress testing:: A look into the Fed's black box". pwc.com/en_US/us/financial-services/regulatory-services/publications/assets/dodd-frank-act-stress-testing-ccar.pdf. PwC Financial Services Regulatory Practice, April 2014.
  22. ^ "Comprehensive Capital Analysis and Review 2014: Assessment Framework and Results" (PDF). Federal Reserve. 26 March 2014. Retrieved 23 April 2014.
  23. ^ "First take: Ten key points form the 2015 CCAR Guidance and final Capital Plan amendments" (PDF). pwc.com/us/en/financial-services/regulatory-services/publications/ccar-summary-2015-basel-iii.jhtml. PwC Financial Services Regulatory Practice, October, 2014.
  24. ^ "Ten key points from 2015 Comprehensive Capital Analysis and Review ("CCAR")" (PDF). pwc.com/us/en/financial-services/regulatory-services/publications/ccar-stress-testing-results-2015.jhtml. PwC Financial Services Regulatory Practice, March, 2015.
  25. ^ "Deutsche Bank fails Fed stress test while three U.S. lenders stumble". 28 June 2018 – via www.reuters.com.
  26. ^ Son, Hugh (28 June 2018). "Goldman Sachs, Morgan Stanley left out of the rally in bank stocks after Fed stress test blunder". CNBC.

Further reading

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