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This technical note discusses key findings of the Stress Testing of the Banking Sector for France. Stress testing analysis was used to capture the most salient risks for banks. The findings support the current focus of Autorité de Contrôle Prudentiel (ACP) to require banks to build up adequate capital and liquidity buffers. They suggest that the banking system would be able to meet regulatory ratios under most scenarios. Solvency stress tests indicate that banks could cope with deterioration in the economic environment while phasing in capital requirements under Capital Requirements Directive IV.

Banks and banking --- Finance --- Funding --- Funds --- Economics --- Currency question --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- Financial institutions --- Money --- Risk management --- Evaluation. --- Banks and Banking --- Finance: General --- Financial Institutions and Services: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Portfolio Choice --- Investment Decisions --- Stress testing --- Solvency stress testing --- Liquidity stress testing --- Financial sector policy and analysis --- Liquidity --- Asset and liability management --- Financial risk management --- France

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This paper provides technical analysis and detailed information underpinning the Financial Sector Assessment Program in Argentina. The implementation of stress tests is conceptually challenging in the Argentinean context, and the results must be interpreted with a high degree of caution. The stress tests examined the resilience of the Argentine banking system to solvency, liquidity, and contagion risks. These tests suggest that most banks are in a position to withstand substantial levels of stress while still phasing in capital requirements under Basel II, and credit risk is the most important vulnerability. Banks appeared resilient to market risk but less so to sovereign risks.

Banks and Banking --- Finance: General --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Interest Rates: Determination, Term Structure, and Effects --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Banking --- Finance --- Stress testing --- Commercial banks --- Liquidity stress testing --- Real interest rates --- Financial sector policy and analysis --- Financial institutions --- Insurance companies --- Financial services --- Banks and banking --- Financial risk management --- Interest rates --- Argentina

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This paper discusses the findings of the assessment of the financial system in Zambia. Nonperforming loans have risen and private sector credit growth has turned negative, owing to the severe pressures of 2015–16. The pressures included slower economic growth, sharply lower copper prices, electricity shortages, very tight monetary policy, and mounting fiscal arrears and severe fiscal funding pressures. Looking ahead, the financial system faces considerable risks, owing to high dependence on copper exports, rising public debt and funding pressures, and an uncertain monetary policy regime. A sharper-than-expected global slowdown may lead to copper price declines and additional pressures on government finance and the exchange rate. A lack of fiscal adjustment may worsen government payments arrears, further impacting asset quality.

Banks and Banking --- Finance: General --- Labor --- Money and Monetary Policy --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Nonwage Labor Costs and Benefits --- Private Pensions --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Banking --- Finance --- Pensions --- Monetary economics --- Commercial banks --- Liquidity stress testing --- Stress testing --- Financial institutions --- Credit --- Money --- Financial services --- Financial sector policy and analysis --- Banks and banking --- Financial risk management --- Financial services industry --- Zambia

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This technical note presents Malta’s risk analysis related aspects of financial system. A comprehensive set of stress tests and interconnectedness analyses were conducted to assess the resilience of Malta’s financial system and shed light on potential vulnerabilities, complementing the euro area Financial Sector Assessment Program. Key metrics suggest that the banking sector is in good health, but challenges exist. Banks are well-capitalized, liquidity is ample, and profitability has been healthy. The solvency stress tests indicate that the banking sector remains resilient, with vulnerabilities limited to a few small banks. The banking sector appears resilient to liquidity pressures, but some small banks are vulnerable to more severe events. The interconnectedness analysis suggests that contagion risk through interlinkages from within the Maltese financial sector is currently higher and more wide-spread than contagion risk through cross-border interbank exposures. Monitoring and conducting periodic analysis of cross-border linkages, and further enhancing the existing inter-sectoral linkages analysis, is expected to provide an early warning before contagion risks accumulate.

Finance, Public. --- Finance, Public --- Cameralistics --- Public finance --- Public finances --- Currency question --- Asset requirements --- Banking --- Banks and Banking --- Banks and banking --- Banks --- Capital adequacy requirements --- Commercial banks --- Depository Institutions --- Finance --- Finance: General --- Financial Institutions and Services: Government Policy and Regulation --- Financial institutions --- Financial regulation and supervision --- Financial risk management --- Financial sector policy and analysis --- Financial services law & regulation --- Liquidity stress testing --- Micro Finance Institutions --- Mortgages --- Solvency stress testing --- Stress testing --- Malta

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This paper assesses the resilience of Panamanian banks to (i) a very severe short-term, and (ii) a significant long-lasting liquidity shock scenario. Short-term liquidity buffers are evaluated by approximating the Liquidity Coverage Ratio (LCR) defined in the Basel III accord. The risk of losing a substantial part of foreign funding is analyzed through a conventional liquidity stress test scrutinizing several layers of liquidity across maturity buckets. The results of this study point to some vulnerabilities. First, our approximations indicate that about half of Panamanian banks would need to adjust their liquid asset portfolios to meet current LCR standards. Second, while most banks would be able to meet funding outflows in the stress-test scenario, a number of banks would have to use up all of their liquidity buffers, and a few even face a final shortfall. Nonetheless, most banks displaying sizable liquidity shortfalls have robust solvency positions.

Banks and banking --- Liquidity (Economics) --- Liquid assets --- Near money --- Money --- Assets, Frozen --- Frozen assets --- Finance --- Agricultural banks --- Banking --- Banking industry --- Commercial banks --- Depository institutions --- Financial institutions --- Financial risk management --- E-books --- Risk management --- Banks and Banking --- Finance: General --- Investments: General --- Financial Institutions and Services: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Portfolio Choice --- Investment Decisions --- General Financial Markets: General (includes Measurement and Data) --- Financial services law & regulation --- Investment & securities --- Liquidity requirements --- Liquidity --- Liquidity stress testing --- Financial regulation and supervision --- Asset and liability management --- Financial sector policy and analysis --- Securities --- State supervision --- Economics --- Financial instruments --- Panama