Stress-testing
At bigger banks, enterprise risk owns scenario frameworks
Risk Benchmarking research finds ERM teams tasked with providing effective challenge on scenario construction across risk silos
Banks upgrade liquidity tests to cope with volatile world
Risk Live: Greater need to assess modern threats from technology transformation
Banks try to prepare for – not predict – geopolitical shocks
Risk Live: HSBC and KeyBank frameworks were tested by Iran attacks
Regulatory risk aversion contributed to SVB failure – Bowman
Supervisors ‘knew, or should have known’ about risks a year before bank’s collapse, says Fed vice-chair
Four in five banks report breaching risk appetite in past year
Risk Benchmarking: Those reporting no breaches run skinnier appetite frameworks, despite similar governance mechanisms
From Pillar to Pillar… to post: where now for op risk in Europe?
Experts think enhanced Pillar 2 charge informed by Dora would be more useful than a blunt Pillar 1
The ECB’s geopolitical stress test needs a price
Only a market can say how much it should cost to insure against losses from a geopolitical risk event, and none exists, argues academic
The evolution of stress testing: unlock one integrated balance sheet
Stress-testing moves from a periodic regulatory exercise to a continuous, strategic discipline that asks: how bad can it get – and do we have a plan to survive it?
Have CCPs got better at absorbing shocks?
Data suggests most CCPs weathered the Iran-war disruption, but shock frequency is starting to bite
Foreign banks take bigger capital hit in US stress tests
Federal Reserve projects median CET1 drop of 3pp for non-US lenders
US banks more optimistic than Fed on loan losses
JP Morgan, BofA and Wells Fargo stray furthest from Fed’s estimates
DB USA undershoots Fed capital decline by 3.4pp in DFAST 2026
Nine banks project smaller CET1 falls than the Fed
Tailoring tails within the mixture model framework
Introducing a data generator mixing Gaussian and Student-t distributions to capture fat tails
US banks cluster at stronger DFAST capital lows
Weakest projected capital ratio rises 390bp since 2018
DFAST averaging reform would hit 75% of tested banks
Sixteen out of 22 lenders tested in both 2025 and 2026 would face higher CET1 depletion
AI agents could become credit risk managers… almost
Risk Live: Bankers say credit stress-testing could be automated, but humans remain accountable
Eleven US banks end DFAST at key capital lows
BMO US, RBC US and TD US only firms to also stay at nadirs across leverage and SLR ratios
Asian banks may need to step up Hormuz-related credit provisions
Regional banks were slow to respond in the first quarter, but the crisis isn’t going away quickly
OCC default fund plans expose rift between clearers
Retail brokers – but not Robinhood – oppose new allocation of default fund contributions amid options surge
DFAST 2026: SCB freeze denies 16 banks capital relief
Lower DFAST depletion would have cut buffers for many, but First Citizens avoids higher SCB
Six banks fall short of full DFAST buffers
DB USA and HSBC North America post largest all-in CET1 shortfalls, while new entrant First Citizens also misses