01938cas a2200253 a 4500 AALejournalIMF013227 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475519051 1018-5941 BD-DhAAL BD-DhAAL Cerutti, Eugenio. The Need for "Un-consolidating" Consolidated Banks' Stress Tests / Eugenio Cerutti, Christian Schmieder. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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 by assuming that capital and liquidity are available wherever they are needed within the group. This assumption neglects the fact that regulations differ across countries (e.g., minimum capital requirements), and, more importantly, that home/host regulators might limit flows of capital or liquidity within a group during periods of stress. This study presents a framework on how to integrate this risk element into stress tests, and provides illustrative calculations on the size of the potential adjustments needed in the presence of some limits on intragroup flows for banks included in the June 2011 EBA stress tests. Mode of access: Internet Schmieder, Christian. IMF Working Papers; Working Paper ; No. 2012/288 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/288/001.2012.issue-288-en.xml IMF e-Library