We describe 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 ongoing …

Post-crisis stress tests have altered banks' credit supply to small business. Banks most
affected by stress tests reallocate credit away from riskier markets and toward safer ones …

We examine the behavior of mortgage borrowers over several economic cycles using an
unprecedented dataset of origination and monthly performance records for over 120 million …

THE commercial banking business has changed dramatically over the past 30 years, due in
large part to technological change. 1 Advances in telecommunications, information …

We examine the Indian bank asset quality review, which doubled the declared loan
delinquency rate. Relative economic stability during the exercise and the absence of a …

The CLASS model is a top-down capital stress testing framework that uses public data,
simple econometric models and auxiliary assumptions to project the effect of …

Stress tests have been increasingly used in recent years by regulators to foster confidence
in the banking sector by not only increasing its resilience via mandatory capital increases …

Supervisory assessments such as stress-tests gauge banks' riskiness and allow regulators
to impose bank-specific capital regulation. This can improve welfare. Yet, regulation based …

We study whether regulators should reveal stress test results that contain imperfect
information about banks' financial health. Although disclosure restores market confidence in …

This paper provides a brief overview of the recent practice of stress testing banking
institutions, focusing on capital adequacy. We argue that stress testing has been …