Republic of Moldova: Financial Sector Assessment Program-Bank Crisis Resolution-Stress Testing

February 29, 2016

Preview Citation

Format: Chicago

Republic of Moldova: Financial Sector Assessment Program-Bank Crisis Resolution-Stress Testing, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Summary

This note discusses the stress tests that were carried out on Moldova’s banking system as part of the 2014 Financial Sector Assessment Program (FSAP) Update. The objective of this exercise was to assess the resilience of the banking system to major sources of risk. The stress tests were conducted in collaboration with the National Bank of Moldova (NBM), and complement other approaches, such as the analysis of financial indicators and the assessment of the quality of supervision. The stress tests focused on the banking system and covered all 14 banks operating in the country. Top-down solvency stress tests were conducted jointly by the FSAP team and staff from NBM, using supervisory data. These stress tests were complemented by bottom-up stress tests, conducted by individual banks using their own internal models, but applied to the macroeconomic scenarios provided by the FSAP team. In addition, liquidity stress tests, together with complementary sensitivity analysis were also carried out on all banks in the system.

Subject: Banking, Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Liquidity stress testing, Market risk, Stress testing

Keywords: Assets maturing, Balance sheet, Banking system, Banks default, Banks' FX liquidity stance, Banks in the system, Banks' liquidity position, Central bank, Commercial banks, CR, Credit risk, FX liquidity positions of the bank, FX liquidity requirement, FX loans maturing, Global, Interest rate, ISCR, Liquidity position, Liquidity shortfall, Liquidity stress testing, Liquidity stress tests, Loan book, Market risk, Stress testing

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/074
Stock No:

1MDAEA2016006
ISBN:

9781513505589
ISSN:

1934-7685

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