Stress Testing Banks: An International Comparison

44 Pages Posted: 24 Feb 2017

See all articles by Luigi Vena

Luigi Vena

LIUC - Università Cattaneo

Date Written: September 30, 2016

Abstract

In the aftermath of the great financial crisis, the financial supervision changed its focus from micro to macroprudential. Matching the key features of each procedure so far conducted with the review of the analyses concerning the market reactions caused by their disclosure we find that stress tests can sooth panic and restore market confidence only when conducted during crisis period, built on severe yet plausible scenarios and accompanied with a credible institutional recapitalization mechanism.

Keywords: Stress Tests, Macroprudential Supervision, Market Reaction

JEL Classification: G01, G14, G28

Suggested Citation

Vena, Luigi, Stress Testing Banks: An International Comparison (September 30, 2016). Available at SSRN: https://ssrn.com/abstract=2922538 or http://dx.doi.org/10.2139/ssrn.2922538

Luigi Vena (Contact Author)

LIUC - Università Cattaneo ( email )

Corso Matteotti
Castellanza (VA)
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
74
Abstract Views
526
rank
369,492
PlumX Metrics