Stress test

EBA launches 2021 EU-wide stress test exercise

Retrieved on: 
Saturday, January 30, 2021
Bank regulation, Risk analysis, Stress test, Systemic risk, European Union, Financial services, Finance, European Banking Authority, European Union bank stress test

29 January 2021 The European Banking Authority (EBA) launched today the 2021 EU-wide stress test and released the macroeconomic scenarios.

Key Points: 


29 January 2021

  • The European Banking Authority (EBA) launched today the 2021 EU-wide stress test and released the macroeconomic scenarios.
  • Following the postponement of the 2020 exercise, due to the COVID-19 pandemic, this years EU-wide stress test will provide valuable input for assessing the resilience of the European banking sector.
  • The EBA expects to publish the results of the exercise by 31 July 2021.
Key features of the exercise
    • The exercise assesses the impact of an adverse macroeconomic scenario on the solvency of EU banks.
    • The stress test allows supervisors to assess if banks capital buffers, which have been accumulated in recent years, are sufficient to cover losses and support the economy in stressed times.
    • Moreover, the exercise fosters market discipline through the publication of consistent and granular data at a bank-by-bank level, which is crucial particularly at times of increased uncertainty in the markets.
    • The results of the exercise are an input to the Supervisory Review and Evaluation Process (SREP).
Key elements of the scenarios
    • The adverse scenario also reflects recent risk assessments by the EBA.
    • A decline in economic growth and rising risk premia could further challenge debt sustainability in the public and private sectors across the EU.
    • The adverse scenario is designed to ensure an adequate level of severity across all EU countries.
    • Equity prices in global financial markets would fall by 50% in advanced economies and by 65% in emerging economies in the first year.
    • The 2021 adverse scenario is very severe having in mind the weaker macroeconomic starting point in 2020 as a result of the severe pandemic-induced recession.
Notes for editors
    • [1] The convention used in the calibration of adverse scenarios for EBA stress tests is one of no policy change.
    • This means that neither monetary policy nor fiscal policy reactions are assumed under the adverse scenario over and above what is already embedded in the baseline scenario.

EIOPA publishes the second paper on the methodological principles of insurance stress testing with focus on liquidity

Retrieved on: 
Tuesday, January 26, 2021
Finance, Money, Liquidity risk, Liquidity at risk, European Insurance and Occupational Pensions Authority, Insurance, Risk, Stress test, Financial risk, Social vulnerability, Own risk and solvency assessment

The European Insurance and Occupational Pensions Authority (EIOPA) published today the second paper in a series of papers on the methodological principles of insurance stress testing.

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) published today the second paper in a series of papers on the methodological principles of insurance stress testing.
  • The Methodological Paper is a follow-up to the consultation with stakeholders and focuses on the liquidity component.
  • In particular, the paper sets out methodological principles that can be used to design bottom-up stress test exercises to assess the vulnerability of insurers to liquidity shocks.
  • The conclusions are based on the current understanding and knowledge of the liquidity risk in the insurance industry.

EBA announces timing for the launch of its 2021 EU-wide stress test exercise

Retrieved on: 
Monday, January 25, 2021
Bank regulation, Canary Wharf, European Banking Authority, Eurozone, European Union, Stress test, Finance, EBA, Government, European Union bank stress test

25 January 2021

Key Points: 

25 January 2021

The European Banking Authority (EBA) will launch its 2021 EU-wide stress test exercise with the publication of the macroeconomic scenarios on 29 January at 18:00 CET.

The EBA expects to publish the results of the exercise by 31 July 2021.

/R E P E A T -- CMHC to release 2020 stress testing results/

Retrieved on: 
Thursday, January 21, 2021
Software testing, Risk analysis, Environmental testing, Sympathetic nervous system, Product testing, Stress testing, Stress test, Tests, Canada Mortgage and Housing Corporation, Hardware stress test, Stress, Psychological stress

OTTAWA, ON, Jan. 20, 2021 /CNW/ -Canada Mortgage and Housing Corporation (CMHC) will release its 2020 stress testing results on Thursday, January 21st at 11:00 am Eastern.

Key Points: 
  • OTTAWA, ON, Jan. 20, 2021 /CNW/ -Canada Mortgage and Housing Corporation (CMHC) will release its 2020 stress testing results on Thursday, January 21st at 11:00 am Eastern.
  • Stress testing is an internal exercise which involves seeking out extreme situations and measuring how well CMHC's business is able to withstand these shocks.
  • The 2020 stress testing exercise focussed on scenarios directly related to the Covid-19 pandemic.
  • It is important to note that the stress testing scenarios are not predictions or forecasts.

CMHC to release 2020 stress testing results

Retrieved on: 
Wednesday, January 20, 2021
Software testing, Tests, Systemic risk, Product testing, Stress testing, Canada Mortgage and Housing Corporation, Stress test, Hardware stress test, Psychological stress, Product, Articles

OTTAWA, ON, Jan. 20, 2021 /CNW/ -Canada Mortgage and Housing Corporation (CMHC) will release its 2020 stress testing results on Thursday, January 21st at 11:00 am Eastern.

Key Points: 
  • OTTAWA, ON, Jan. 20, 2021 /CNW/ -Canada Mortgage and Housing Corporation (CMHC) will release its 2020 stress testing results on Thursday, January 21st at 11:00 am Eastern.
  • Stress testing is an internal exercise which involves seeking out extreme situations and measuring how well CMHC's business is able to withstand these shocks.
  • The 2020 stress testing exercise focussed on scenarios directly related to the Covid-19 pandemic.
  • Detailed information on CMHC's annual stress testing exercise and 2020 results will be available through an embargoed media availability and conference call with CMHC's Chief Risk Officer, Nadine LeBlanc, on Thursday, January 21st at 10:00 am Eastern.

Citizens Financial Group, Inc. Reiterates Key Aspects of Capital Plan after Resubmission

Retrieved on: 
Friday, December 18, 2020
Banking, Professional services, Finance, Finance, Financial services, Systemic risk, Money, Subprime mortgage crisis, Bank regulation, Federal Reserve, CFGS, CFG, Capital requirement, Stress test, Citigroup

Citizens Financial Group, Inc. (NYSE: CFG or the Company) today received the results of its 2020 Capital Plan resubmission and December 2020 Stress Test from the Board of Governors of the Federal Reserve System (the Federal Reserve).

Key Points: 
  • Citizens Financial Group, Inc. (NYSE: CFG or the Company) today received the results of its 2020 Capital Plan resubmission and December 2020 Stress Test from the Board of Governors of the Federal Reserve System (the Federal Reserve).
  • CFGs results exceed all capital requirements under the Federal Reserves severe stress scenarios and the Company reiterates key aspects of its 2020 Capital Plan, which includes maintaining quarterly common dividends at the current level.
  • As a result, the Company continues to believe that the Federal Reserves PPNR models for the Company remain inaccurate.
  • Citizens Financial Group, Inc. is one of the nations oldest and largest financial institutions, with $179.2 billion in assets as of September 30, 2020.

Wells Fargo Comments on Federal Reserve’s Stress Test Results

Retrieved on: 
Friday, December 18, 2020
Finance, Banking, Professional services, White House, Federal Government, Public policy, Government, Financial District, San Francisco, Wells Fargo, Stress test, Wells, Finance, Financial services, Banking

Wells Fargo & Company (NYSE: WFC) today commented on the Federal Reserves stress test results.

Key Points: 
  • Wells Fargo & Company (NYSE: WFC) today commented on the Federal Reserves stress test results.
  • Todays stress test results continue to demonstrate Wells Fargos strong capital position and the benefits of our diverse franchise and sound financial risk management practices, said CEO Charlie Scharf.
  • In addition to announcing Wells Fargos stress test results, the Federal Reserve today announced that it has extended, until March 31, 2021, the deadline for the Federal Reserve to provide notice of whether Wells Fargos stress capital buffer requirement will be recalculated.
  • News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories .

ESMA updates guidelines on stress tests for money market funds

Retrieved on: 
Thursday, December 17, 2020
Finance, Money, Systemic risk, Financial markets, Bank regulation, Risk analysis, Stress test, Money market fund, European Securities and Markets Authority, Securities market, Esma

16 December 2020

Key Points: 
  • 16 December 2020

    Fund Management

    The European Securities and Markets Authority (ESMA), the EUs securities markets regulator, is publishing the 2020 update of guidelines on MMF stress tests under the Money Market Funds Regulation (MMFR).

  • Risks have increased for MMFs and the money market instruments in which they invest.
  • In this context, ESMA assessed whether the scenarios envisaged in the existing guidelines, published in 2019, are still appropriate in the current environment.
  • Applying the 2019 scenarios in the current market environment generally leads to absolute levels of stress, similar to the levels observed in March.

ESMA updates guidelines on stress tests for money market funds

Retrieved on: 
Wednesday, December 16, 2020
Finance, Money, Systemic risk, Financial markets, Bank regulation, Risk analysis, Stress test, Money market fund, European Securities and Markets Authority, Securities market, Esma

16 December 2020

Key Points: 
  • 16 December 2020

    Fund Management

    The European Securities and Markets Authority (ESMA), the EUs securities markets regulator, is publishing the 2020 update of guidelines on MMF stress tests under the Money Market Funds Regulation (MMFR).

  • Risks have increased for MMFs and the money market instruments in which they invest.
  • In this context, ESMA assessed whether the scenarios envisaged in the existing guidelines, published in 2019, are still appropriate in the current environment.
  • Applying the 2019 scenarios in the current market environment generally leads to absolute levels of stress, similar to the levels observed in March.

Worldwide Cardiopulmonary Stress Testing Systems Industry to 2027 - Featuring MGC Diagnostic, Nihon Kohden & Schiller Among Others

Retrieved on: 
Friday, December 11, 2020
Risk analysis, Bank regulation, Stress test, Systemic risk, Compound annual growth rate, Economy, Finance, Money

The report also provides the compound annual growth rate (CAGR) for the global cardiopulmonary stress testing systems market during the forecast period.

Key Points: 
  • The report also provides the compound annual growth rate (CAGR) for the global cardiopulmonary stress testing systems market during the forecast period.
  • Analysts have employed a combination of top-down and bottom-up approaches to study various phenomenon in the global cardiopulmonary stress testing systems market.
  • What will be the Y-o-Y growth of the global cardiopulmonary stress testing systems market between 2019 and 2027?
  • This has helped in reaching estimates on future prospects of the global cardiopulmonary stress testing systems market more reliably and accurately.