Series: IMF Working Papers
Author(s): Rupert Worrell
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2008
Keywords: Stress test, financial risk assessment, capital adequacy, capital adequacy ratio, banking, banking system, capital inflow,
This paper illustrates how stress tests of banking systems may be designed to evaluate banks' reaction to shocks of increasing intensity, up to the point where regulatory norms are breached, or banks become insolve...