Canada: Financial Sector Assessment Program-Stress Testing-Technical Note

March 7, 2014

Preview Citation

Format: Chicago

Canada: Financial Sector Assessment Program-Stress Testing-Technical Note, (USA: International Monetary Fund, 2014) accessed November 21, 2024

Summary

This paper examines the stress testing module of the 2013 Financial Sector Assessment Program (FSAP) update for Canada. The IMF report highlights the three major segments of the domestic financial covered during the stress tests. The bank solvency stress tests suggest that while all banks would fall below the Canadian “all-in” Common Equity Tier 1 (CET1) supervisory threshold during severe economic distress, the resulting recapitalization needs are manageable. This IMF report provides recommendations for the Canadian authorities, derived from this joint exercise, to enhance the individual components of their stress testing framework.

Subject: Banking, Credit, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Loans, Money, National accounts, Personal income, Stress testing

Keywords: Balance sheet, Base year, Capital ratio, CR, Credit, Credit loss, Credit risk, Europe, Global, Income statement, Interest rate, ISCR, Liquidity risk, Loans, Net income, Personal income, Stress testing

Publication Details

Pages:

101
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/069
Stock No:

1CANEA2014007
ISBN:

9781475523096
ISSN:

1934-7685

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