Front Matter Page
© 2009 International Monetary Fund
September 2009
IMF Country Report No. 09/279
Isle of Man: Financial Sector Assessment Program Update—Technical Note—Stress Testing: Banking and Insurance
This Technical Note on Stress Testing: Banking and Insurance on the Isle of Man was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed in April 2009. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Isle of Man or the Executive Board of the IMF.
The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.
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Contents
Glossary
I. Introduction
II. Banking Sector
A. Coverage
B. Methodology
C. Metrics and Calibration of Shocks
D. Results
III. Insurance Sector
A. Coverage
B. Methodology
C. Metrics and Calibration of Shocks
D. Results
Tables
1. Balance Sheet of Domestically Incorporated Banks, by Sector
2. Stress Test Results for the Banks
3. Insurance Sector Indicators
4. Stress Test Results for the Life Insurance Sector
Boxes
1. Concentration Risk of Intra-Group Exposures: The Case of KSFIOM
2. Liquidity Risk Shocks
3. Credit Risk Shocks
4. Market Risk Shocks
Appendix
1. Understanding The Dynamics For The Life Insurance Sector
Glossary
| BU |
Bottom-up approach |
| BPS |
Basis points |
| CAR |
Capital adequacy ratio |
| UK FSA |
UK Financial Services Authority |
| FSAP |
Financial sector assessment program |
| FSC |
Financial Supervision Commission |
| FX |
Foreign exchange |
| IOM |
Isle of Man |
| IMF |
International Monetary Fund |
| IPA |
Insurance and Pension Authority |
| NPL |
Nonperforming loan |
| PD |
Probabilities of default |
| RMM |
Required minimum margin |
| TD |
Top-down approach |
| ULC |
Unit-linked contract |