Portugal: Financial Sector Assessment Program: Technical Note: Stress Testing

January 30, 2007

Preview Citation

Format: Chicago

Portugal: Financial Sector Assessment Program: Technical Note: Stress Testing, (USA: International Monetary Fund, 2007) accessed November 21, 2024

Summary

This technical note explains stress testing for Portugal’s financial sector. A core part of the banking stress tests was the bottom-up exercise implemented by individual institutions. The bottom-up stress tests focus only on the impact of expected losses on indicators of profitability and capitalization. The results are presented in terms of the actual solvency levels before and after the shock, allowing for an assessment of the capacity of banks to withstand the shocks.

Subject: Banking, Capital adequacy requirements, Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Income, Market risk, National accounts, Stress testing

Keywords: Capital adequacy ratio, Capital adequacy requirements, CR, Credit risk, Equity price risk, Exchange rate risk, Foreign exchange, Global, Income, Interest income, Interest rate risk, ISCR, Life lapse risk, Life lapse risk nonlife premium, Market financing, Market risk, Market share, Net interest income, Nonlife CAT risk, Price shock, Profit and loss, Risk absorption properties, Stress testing, Underwriting risk, Volatility risk

Publication Details

Pages:

49
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2007/034
Stock No:

1PRTEA2007004
ISBN:

9781451832266
ISSN:

1934-7685

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