IMF Staff Country Reports

Kingdom of the Netherlands-Netherlands: Financial Sector Assessment Program:: Technical Note-Financial Stability and Stress Testing of the Banking, Household, and Corporate Sectors

April 13, 2017

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Kingdom of the Netherlands-Netherlands: Financial Sector Assessment Program:: Technical Note-Financial Stability and Stress Testing of the Banking, Household, and Corporate Sectors, (USA: International Monetary Fund, 2017) accessed December 22, 2024

Summary

This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program for the Netherlands on financial stability and stress testing of the banking, household, and corporate sectors. The Dutch banking system appears resilient to risks. The stress test results indicate that a scenario of extreme adverse macroeconomic conditions would have a significant negative impact on Basel III fully loaded capital ratios, but all banks would maintain capital ratios above minimum regulatory requirements. However, the results for the leverage ratio show that a significant bank could fall just below the fully loaded minimum 3 percent hurdle.

Subject: Banking, Financial institutions, Financial sector policy and analysis, Housing prices, Income, Loans, Mortgages, National accounts, Prices, Stress testing

Keywords: Asset density, Banking sector, Cash flow, CR, Current liabilities, Europe, Global, Housing prices, Hurdle rate, Income, Interest rate, Interest rate shock, ISCR, Loans, Low income, LTV ratio, Money market interest rate, Mortgage interest rate, Mortgages, Negative equity, Return on equity, Sensitivity analysis, Stress testing, Yield curve

Publication Details

  • Pages:

    81

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2017/095

  • Stock No:

    1NLDEA2017009

  • ISBN:

    9781475593990

  • ISSN:

    1934-7685