Series: IMF Working Papers
Author(s): Eugenio Cerutti , and Christian Schmieder
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 06 December 2012
Keywords: Testing, Cross-border, banking, Stability, Ring-fencing, Subsidiaries, capital adequacy, bank data, banking system, International Lending and Debt Problems
The recent crisis has spurred the use of stress tests as a (crisis) management and early warning tool. However, a weakness is that they omit potential risks embedded in the banking groups' geographical structures b...