United Kingdom: Financial Sector Assessment Program-The Bank of England’s Stress Testing Framework-Technical Note

June 17, 2016

Preview Citation

Format: Chicago

United Kingdom: Financial Sector Assessment Program-The Bank of England’s Stress Testing Framework-Technical Note, (USA: International Monetary Fund, 2016) accessed December 21, 2024

Summary

This paper discusses the Bank of England’s (BoE’s) stress testing program, including both the concurrent stress test and the stress testing done by the banks through the Internal Capital Adequacy Assessment Process, though with a clear focus on the former. The stress test is meant to generate information on potential vulnerabilities of the system to emerging and growing risks, both financial and in the real economy. The main purpose of the stress testing framework is to provide a forward-looking, quantitative assessment of capital adequacy of the U.K. banking system as a whole, and individual institutions within it. The stress-testing program is evaluated along five dimensions: scope of coverage, scenario design, analytical infrastructure, disclosure, and governance.

Subject: Banking, Capital adequacy requirements, Countercyclical capital buffers, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Financial statements, Public financial management (PFM), Stress testing

Keywords: Bank projection, Bank specific, Banking system, Banks in the U.K., BoE staff, BoE's model, BoE's stress, Capital adequacy requirements, Capital position, Countercyclical capital buffers, CR, Custody bank, Financial sector stability, Financial statements, Global, Governance process, ISCR, PRA buffer, Reference date, Stress test, Stress testing, U.K. financial system, U.K. subsidiary

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/162
Stock No:

1GBREA2016010
ISBN:

9781475528558
ISSN:

1934-7685

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