Banks should improve stress testing, says UK FSA

Financial institutions should use more extreme scenarios in stress testing, the UK Financial Services Authority (FSA) has warned.

In an open letter to chief executives published on its website in mid-October, the FSA wrote: "We were struck by how mild the firm-wide stress events were at some of the firms we visited ... few firms were seeking scenarios ... that might require a dividend cut, generate an annual loss or result in shortfalls against capital requirements." Stress tests should represent

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: