WSJ [free link to article]: “European Union regulators plan to subject Twitter to a stress test to determine how well it complies with Europe’s new digital-content law, a top EU tech regulator said, ramping up the bloc’s preparations for enforcing the West’s most far-reaching digital-content law. A team of roughly five to 10 digital specialists… Continue Reading
Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002
Search Results for: stress test
FHFA Announces Results of Fannie Mae and Freddie Mac Dodd-Frank Act Stress Tests
“The Federal Housing Finance Agency (FHFA) today released a report providing the results of annual stress tests Fannie Mae and Freddie Mac (the Enterprises) are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act requires certain financial institutions with more than $10 billion in assets to… Continue Reading
Dodd-Frank Act Stress Test (DFAST)
Via FDIC Overview – “Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) requires state nonmember banks and state savings associations with total consolidated assets of more than $10 billion to conduct annual stress tests. On October 15, 2012, the FDIC published its final annual stress test rule (Part 325),… Continue Reading
NY Fed – Are Stress Tests Still Informative?
Liberty Street Economics – “Since the height of the financial crisis, each year the Federal Reserve has disclosed the results of its stress tests, and stress testing has become “business as usual” in the U.S. banking industry. In this post, we assess whether market participants find supervisory stress test disclosures informative. After half a decade,… Continue Reading
Board Identified Areas of Improvement for Supervisory Stress Testing Model Validation Activities
The Board Identified Areas of Improvement for Its Supervisory Stress Testing Model Validation Activities, and Opportunities Exist for Further Enhancement. Board Report: 2015-SR-B-018 October 29, 2015 “The Office of Inspector General conducted this evaluation to assess the extent to which the Board of Governors of the Federal Reserve System’s (Board) model risk management practices in… Continue Reading
Stress Testing Corporate Balance Sheets in Emerging Economies
IMF – Julian T. S. Chow – September 30, 2015 – Working Paper No. 15/216 “In recent years, firms in emerging market countries have increased borrowing, particularly in foreign currency, owing to easy access to global capital markets, prolonged low interest rates and good investment opportunities. This paper discusses the trends in emerging market corporate… Continue Reading
Stress Testing Convergence
Gutierrez Gallardo, German and Schuermann, Til and Duane, Michael, Stress Testing Convergence (July 28, 2015). Available for download at SSRN: http://ssrn.com/abstract=2636984 “This year, 2015, marks the six-year anniversary of US regulatory stress testing. We observe three key trends: 1) Increasingly aggressive capital management: Banks initially responded to CCAR by maintaining wide capital cushions vs. regulatory… Continue Reading
Agencies Release Statement on Dodd-Frank Act Company-run Stress Tests at Medium-sized Financial Companies
“Federal banking agencies today reiterated the disclosure requirements for the annual stress tests conducted by financial institutions with total consolidated assets between $10 billion and $50 billion. These medium-sized companies are required to conduct annual, company-run stress tests–implementing a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act–with the results disclosed to the… Continue Reading
Are BHC and Federal Reserve Stress Test Results Converging? What Do We Learn from 2015?
Federal Reserve Bank of New York – Liberty Street Economics – Beverly Hirtle, Anna Kovner, and Eric McKay: “In March, the Federal Reserve and thirty-one large U.S. bank holding companies (BHCs) announced results of the latest Dodd-Frank Act-mandated stress tests. Some commentators have argued that BHCs, in designing their stress test models, have strong incentives… Continue Reading
Federal Reserve releases results of supervisory bank stress tests
“The largest U.S.-based bank holding companies continue to build their capital levels and to strengthen their ability to lend to households and businesses during a period marked by severe recession and financial market volatility, according to the results of supervisory stress tests announced by the Federal Reserve on Thursday. The most severe hypothetical scenario projects… Continue Reading
Federal Reserve releases results of supervisory bank stress tests
“The largest U.S.-based bank holding companies continue to build their capital levels and to strengthen their ability to lend to households and businesses during a period marked by severe recession and financial market volatility, according to the results of supervisory stress tests announced by the Federal Reserve on Thursday. The most severe hypothetical scenario projects… Continue Reading
NY Fed – Supervisory Stress Tests
Supervisory Stress Tests – November 2014. Number 696. Beverly Hirtle and Andreas Lehnert. “This article describes the background, design choices and particular details of stress tests used as part of an overall supervisory regime; that is, their formal integration into the process of the ongoing prudential supervision of banks and other large financial institutions. We then describe how the U.S.… Continue Reading
