Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector

September 17, 2015

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Format: Chicago

Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector, (USA: International Monetary Fund, 2015) accessed December 22, 2024

Summary

This Technical Note discusses results of banking sector stress tests on Norway. The Norwegian banking sector is generally well prepared to cope with possible external shocks, but imbalances have built up in recent years and could pose challenges. The stress-testing exercise included a comprehensive analysis of solvency and liquidity risks in the banking sector. The stress test results show that while the banking sector is highly resilient, it could experience challenges in case of severe macroeconomic shocks, as assumed in the adverse scenarios. The stress tests also illustrate that the banking system remains vulnerable to liquidity risks, due in part to scarce liquidity buffers in Norwegian krone.

Subject: Banking, Commercial banks, Credit, Credit risk, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Financial stability assessment, Money, Stress testing

Keywords: Aggregate banking sector assets, Asset haircut, Asset portfolio, Bank loss, CR, Credit, Credit risk, Credit risk, Financial Sector Assessment Program, Financial stability assessment, FSAP team, FX liquidity position, Global, IRB model, ISCR, Liquidity risk, Liquidity stress tests, Mortgage company, Stress testing

Publication Details

Pages:

49
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2015/258
Stock No:

1NOREA2015009
ISBN:

9781513586700
ISSN:

1934-7685

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