Stress Testing of Banking Systems
by Martin Čihák of the International Monetary Fund
Abstract: In response to increased financial instability in many countries in the 1990s, policy makers became interested in better understanding vulnerabilities in financial systems, and particularly in banks. One of the key techniques for quantifying vulnerabilities is stress testing.
Keywords: financial systems, financial soundness, stress testing.
Published in: Czech Journal of Economics and Finance, Vol. 55, No. 9-10, (September 2005), pp. 418-440.
Previously titled: Stress Testing: A Review of Key Concepts