Spain: Financial Sector Assessment Program-Technical Note-Stress Testing Banking System Resilience

November 13, 2017

Preview Citation

Format: Chicago

Spain: Financial Sector Assessment Program-Technical Note-Stress Testing Banking System Resilience, (USA: International Monetary Fund, 2017) accessed December 21, 2024

Summary

This Technical Note discusses the results of the stress testing of banking system resilience in Spain. The results indicate that some banks may have difficulty enduring additional pressures on their profitability. In addition, some banks are vulnerable to market losses arising from a rapid increase in interest rates, given their significant exposures to fixed income securities. Near-term funding and liquidity risks seem limited, but funding challenges are likely to grow. Several banks are heavily reliant on central bank funding. Based on these findings, the authorities are encouraged to continue to monitor closely interest rate and government bond market risks in their stress testing exercises.

Subject: Banking, Capital adequacy requirements, Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Liquidity requirements, Liquidity stress testing, Stress testing

Keywords: Asset quality, Capital adequacy requirements, Capital ratio, Central bank, CR, Credit risk, EU bank reporting, Europe, Global, Hurdle rate, ISCR, Liquidity requirements, Liquidity stress testing, Market-bank nexus, NSFR position, Spanish bank, Stress testing

Publication Details

Pages:

51
Volume:

---
DOI:

---
Issue:

---
Series:

Country Report No. 2017/342
Stock No:

1ESPEA2017012
ISBN:

9781484327197
ISSN:

1934-7685

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Country Reports