Sweden: Financial Sector Assessment Program-Technical Note-Stress Testing

October 5, 2017

Preview Citation

Format: Chicago

Sweden: Financial Sector Assessment Program-Technical Note-Stress Testing, (USA: International Monetary Fund, 2017) accessed November 21, 2024

Summary

This Technical Note explains the stress testing approach of the 2016 Financial Sector Assessment Program in assessment of risk in the Swedish financial sector and provides the results of the tests. Stress tests covered three major segments of the domestic financial sector. The resilience of the Swedish banking system was tested against solvency, liquidity, and contagion risks. The solvency stress test suggests that banks would be resilient to severe economic distress. Bank liquidity stress tests suggest that banks could withstand severe funding and market liquidity shocks, but there are pockets of vulnerability. The overall stress testing exercise suggests that there is room for improvement in the individual components of authorities’ stress testing framework.

Subject: Banking, Credit, Financial institutions, Financial sector policy and analysis, Money, Mutual funds, National accounts, Personal income, Solvency stress testing, Stress testing

Keywords: Asset class, Balance sheet, Baltics, Cash flow, CR, Credit, Current yield, Forward rate, Global, Interest income, Investment funds, ISCR, Long-dated investment assets, Market value, Mutual funds, Net income, Personal income, Solvency stress testing, Sovereign bond, Stress scenario, Stress testing, Swedish krona

Publication Details

Pages:

93
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/309
Stock No:

1SWEEA2017005
ISBN:

9781484322475
ISSN:

1934-7685

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