Stress Testing for Commercial, Investment and Custody Banks
Handbook of Financial Stress Testing, Forthcoming
46 Pages Posted: 2 Mar 2020
Date Written: January 27, 2020
In this chapter we describe stress testing at banks covering the major products and businesses in which banks engage. This includes commercial and retail lending, capital markets (investment banking, sales and trading), and trust and custody. We cover loss and net income modeling and thus balance sheet and P&L (income statement) evolution, including noninterest expense items in the form of operational losses.
Keywords: risk management, capital adequacy, bank regulation, financial crisis
JEL Classification: G01, G17, G18, G21, G24, G28, G32, G38
Suggested Citation: Suggested Citation