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Home > News and Publications > Quarterly Bulletin 2016 Q3
 

Quarterly Bulletin 2016 Q3

21 September 2016

​Complete issue (3.4MB)

Topical article 

Stress testing of banks: an introduction

By Kieran Dent, Ben Westwood and Miguel Segoviano

Stress testing of banks: an introduction
The usage and prominence of bank stress tests has risen substantially in the years following the global financial crisis. They are now established as a key part of the bank regulation toolkit.

Typically, bank stress tests measure the resilience of banks to hypothetical adverse scenarios like severe recessions, with results used by central banks and regulators to measure risks and manage them through the setting of prudential policy.
 
Over time, to enhance their usefulness to policymakers, stress tests are likely to develop further, for example by testing banks against a wider range of resilience metrics than capital, and further exploring how stresses might be transmitted across the financial system (eg through contagion).
PDF of article
 

Recent economic and financial developments


​Markets and operations
The first section of this article reviews developments in financial markets between the cut‑off date of the 2016 Q2 Quarterly Bulletin on the 27 June 2016 and 5 September 2016. The second section goes on to describe the Bank’s own operations within the Sterling Monetary Framework.
PDF of markets and operations

 

 

 

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