V Stress Testing of Financial Systems
Author:
International Monetary Fund
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Language:
English
Print Publication Date:
08 Apr 2002
Keywords:
OP; ratio; market; asset; foreign currency; asset quality; market liquidity indicator; average equity; on-balance-sheet assets; Financial soundness indicators; Real estate prices; Loans; Stress testing; Capital adequacy requirements; Global; Europe; Africa; Middle East; Western Hemisphere

Abstract

Having discussed specific FSIs, it is important to look at methods to analyze them. A variety of methods are available to analysts to derive from FSIs conclusions about the stability of financial systems—from simple ratio analysis to more complex macro and microeconomic modeling. The focus of this chapter is on one particular method—stress testing—originally developed as a bank risk management tool, but the object of growing interest for its potential application to analysis of strengths and vulnerabilities at the level of the system as an aggregate, as opposed to the individual institutions.

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Cover Financial Soundness Indicators
Financial Soundness Indicators
Analytical Aspects and Country Practices
ISBN:
9781589060869
ISSN:
0251-6365
Publication Date:
08 Apr 2002
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589060869.084
Pages:
111

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