Belgium: Financial System Stability Assessment-Technical Note- Stress Testing the Banking and Insurance Sectors and Systemic Risk Analysis

March 8, 2018

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Format: Chicago

Belgium: Financial System Stability Assessment-Technical Note- Stress Testing the Banking and Insurance Sectors and Systemic Risk Analysis, (USA: International Monetary Fund, 2018) accessed December 21, 2024

Summary

This Technical Note discusses the results of the stress testing of Belgium’s banking and insurance sectors. Belgium’s financial sector remains resilient in the face of the rising cyclical vulnerabilities, but there is a need for closely monitoring risks. Stress tests on banks and insurance companies confirm that they can absorb credit, sovereign, and market losses in the event of a severe deterioration in macro-financial conditions. All banks meet minimum capital requirements and none needs to draw down its capital conservation buffer over the stress horizon. The risk of interbank contagion through direct exposures is low. Insurance companies are also generally resilient and losses incurred in the stress scenarios by those that belong to banking groups do not threaten the soundness of those groups.

Subject: Banking, Credit, Credit risk, Financial crises, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Insurance companies, Money, Stress testing

Keywords: Banking sector, Banking system, Belgian bank, BNP Paribas, Cash flow, CR, Credit, Credit risk, Credit risk, Financial system, Fixed income, Global, Insurance companies, Interest rate, ISCR, Mortgage loan, Return on equity, Securities portfolio, Sovereign bond, Stress testing

Publication Details

Pages:

89
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/069
Stock No:

1BELEA2018003
ISBN:

9781484345870
ISSN:

1934-7685

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