Stress Tests Disclosure: Theory, Practice, and New Perspectives
To appear at Handbook of Financial Stress Testing, Edited by Farmer, Kleinnijenhuis, Wetzer, and Schuermann, Cambridge University Press, 2020
29 Pages Posted: 20 Jul 2020
Date Written: June 28, 2020
We review various costs and benefits of disclosure of stress test results and the models behind the tests and provide unified frameworks to evaluate the tradeoffs. We also review the evolution of practice on the disclosure of stress test results over the years and caution against the link between greater disclosure and weaker tests.
JEL Classification: D82, G01, G28
Suggested Citation: Suggested Citation