Stress tests and capital adequacy: the story so far
A review of Risk.net's coverage of stress tests and oversight
Simulating banks' ability to survive another crisis is a valuable tool for regulators - we round up Risk.net's coverage of the growth of regulatory stress tests
Since the 2008 financial crisis brought leading banks around the world to the brink of collapse, regulators have been focused on ensuring the institutions they supervise could survive another similar shock in the future. Stress tests have been the foundation of this effort.
The latest news
Twenty-five banks failed the latest round of ECB stress tests, but there are signs the Fed's stress scenarios are becoming less extreme as the crisis recedes.
FVA, correlation, wrong-way risk: EU stress test's hidden gems
Bafin blocked Deutsche Bank correlation exit, funds claim
EU stress tests show €14bn funding burden on Italy swaps
EU stress tests see €46bn trading loss for G-Sibs
25 banks fail ECB stress check on financial health
Fed reassures US banks on adverse scenario choice criteria
EBA's Enria: stress tests complicated by multi-speed CRR
Fed, CFTC officials back standard stress tests for CCPs
CCAR – 2011
In March 2011, the Fed announced details of the annual Comprehensive Capital Analysis and Review. Using multiple scenarios and a much more detailed approach, CCAR has been an end-of-year commitment for major US banks ever since.
Fed orders banks to break open black boxes
Fed to kick off annual stress-testing programme 'towards end of the year'
Risk managers complain about Fed stress test workload
Success in Fed stress tests comes with a cost
Fed reassures US banks on adverse scenario choice criteria
Scap – 2009
The CCAR's predecessor was the US Supervisory Capital Assessment Program (Scap), run by the Federal Reserve Board in March 2009. It found 10 banks falling short by nearly $75 billion in capital when their ability to survive a deepening recession was tested.
Fed divulges process behind bank stress tests
Treasury silent on Tarp as banks submit $75bn SCAP capital plans
Cebs and EBA – 2009
The Committee of European Banking Supervisors (Cebs) ran its own stress tests in mid-2009, but did not initially release the results, and was later criticised for giving banks an easy ride. National European regulators ran their own tests, as did Cebs' successor, the European Banking Authority, along with the European Central Bank, in 2011 and 2014.
2013:
Bank of England still undecided over stress test scenarios
2011:
EBA stress test: Santander's sovereign swaps exposure not disclosed
EBA stress test: €3.4bn error in BPCE's derivatives exposure to France
2011 stress tests will struggle for credibility, say experts
EBA to launch new stress tests
EBA stress tests: adverse scenario toughened up
2010:
Seven banks fail Cebs stress tests
FSA surprises UK banks with tougher stress tests
All eyes on EU bank stress tests - but details remain elusive
2009:
Put to the test – Finansinspektionen and the value of stress tests
Cebs says banks 'sufficiently capitalised' after EU-wide stress testing
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