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Economics/Finances Stress-testing the Banking System: Methodologies and Applications

Posted on 2010-03-16




Name:Economics/Finances Stress-testing the Banking System: Methodologies and Applications
ASIN/ISBN:052176730X
Language:English
File size:2.8 Mb
Publish Date: 2009
ISBN: 052176730X
Pages: 354 pages
File Type: PDF
File Size: 2,8 MB
Other Info: Cambridge University Press
   Economics/Finances Stress-testing the Banking System: Methodologies and Applications

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Mario Quagliariello, "Stress-testing the Banking System: Methodologies and Applications"

Stress tests are used in risk management by banks in order to determine how certain crisis scenarios would affect the value of their portfolios, and by public authorities for financial stability purposes. Until the first half of 2007, interest in stress-testing was largely restricted to practitioners. Since then, the global financial system has been hit by deep turbulences, including the fallout from sub-prime mortgage lending. Many observers have pointed out that the severity of the crisis has been largely due to its unexpected nature and have claimed that a more extensive use of stress-testing methodologies would have helped to alleviate the repercussions of the crisis. This book analyses the theoretical underpinnings, as well as the practical aspects, of applying such methodologies. Building on the experience gained by the economists of many national and international financial authorities, it provides an updated toolkit for both practitioners and academics.

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