The Federal Reserve released its scenarios on February 9 for its annual stress testing exercise, including a new exploratory market shock test for some banks.
Stress-Testing
Fed provides more detail on pilot climate stress test
The Federal Reserve has provided more detail about its exploratory climate related stress tests, which includes banks providing data on real estate and corporate exposures by July 31.
Hong Kong pushes ahead with boosted climate risk supervision regime
The Hong Kong Monetary Authority’s upgrades to its climate stress testing programme make clear its ambitions to be a leading jurisdiction in climate risk supervision. By James King
Climate stress testing comes of age but modelling challenges remain
Central banks report good progress on developing climate stress testing but critics point to weaknesses, including difficulties in modelling for catastrophic shocks to financial stability.
Six largest US banks to participate in pilot climate stress test
In 2023, six of the largest US banks are to participate in a pilot climate stress test lasting for about a year so supervisors can better manage climate-related financial risks.
UK’s CCPs pass exploratory stress test
The three UK central counterparty clearing houses (CCPs) were able to withstand a simulated simultaneous default of two clearing members resulting in the largest losses or negative liquidity, according to a Bank of England (BoE) stress test.
Bank of England revives annual cyclical scenario stress tests
Rising global interest rates, deep recession and crashing asset prices are highlights of the Bank of England’s (BoE’s) annual cyclical scenario stress test on banks after a two-year absence following the Covid-19 pandemic and Russia’s invasion of Ukraine.
Fed to conduct pilot climate stress test on biggest banks
Six of the largest banks in the US are to participate in a pilot climate scenario analysis to help supervisors and firms to better manage climate-related financial risks.
Banks ace stress tests - but next one might be harder to pass
As the prospects for the US economy darken, the stress test results published on June 23 show systemically important banks are able to swallow substantial losses if a recession materialises.
UK financial firms face huge climate-related losses
Climate change could inflict huge credit losses on financial firms according to the Bank of England’s latest stress tests, although these would still be manageable for the industry.
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