How to Capture Macro-Financial Spillover Effects in Stress Tests? /

One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with meaningful macro-financial linkages, id est, taking into account spillover effects and other forms of contagion. We come up with an approach to simulate the potential impact of spillover...

תיאור מלא

מידע ביבליוגרפי
מחבר ראשי: Hesse, Heiko
מחברים אחרים: Salman, Ferhan, Schmieder, Christian
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 2014.
סדרה:IMF Working Papers; Working Paper ; No. 2014/103
גישה מקוונת:Full text available on IMF
תיאור
סיכום:One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with meaningful macro-financial linkages, id est, taking into account spillover effects and other forms of contagion. We come up with an approach to simulate the potential impact of spillover effects based on the 'traditional' design of macro-economic stress tests. Specifically, we examine spillover effects observed during the financial crisis and simulate their impact on banks' liquidity and capital positions. The outcome suggests that spillover effects have a highly non-linear impact on bank soundness, both in terms of liquidity and solvency.
תאור פריט:<strong>Off-Campus Access:</strong> No User ID or Password Required
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תיאור פיזי:1 online resource (34 pages)
פורמט:Mode of access: Internet
ISSN:1018-5941
גישה:Electronic access restricted to authorized BRAC University faculty, staff and students