Bank Stress Test

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Dictionary Says

Definition of 'Bank Stress Test'

An analysis conducted under unfavorable economic scenarios which is designed to determine whether a bank has enough capital to withstand the impact of adverse developments. Stress tests can either be carried out internally by banks as part of their own risk management, or by supervisory authorities as part of their regulatory oversight of the banking sector. These tests are meant to detect weak spots in the banking system at an early stage, so that preventive action can be taken by the banks and regulators.
Investopedia Says

Investopedia explains 'Bank Stress Test'

Stress tests focus on a few key risks – such as credit risk, market risk, and liquidity risk – to banks’ financial health in crisis situations. The results of stress tests depend on the assumptions made in various economic scenarios, which are described by the International Monetary Fund as “unlikely but plausible.” Bank stress tests attracted a great deal of attention in 2009, as the worst global financial crisis since the Great Depression left many banks and financial institutions severely under-capitalized.
Search results for

'Bank Stress Test'

  • Banking Stress Tests: Would Yours Pass?

    http://www.investopedia.com/articles/fundamental-analysis/09/banking-stress-tests.asp
    ... Knowing what a bank stress test is and whether your bank is likely to pass can help
    the investor find good bank investments and the customer safer institutions ...

  • Who Will Make The Bank "Death Watch" List?

    http://stocks.investopedia.com/stock-analysis/2009/Who-Will-Make-The-Bank-Death-Watch-List-WFC-NTRS-COF-FITB0302.aspx
    ... A bank's common equity and asset information can be attained easily from reports
    filed with the government by the bank. Stress Test Assessing a bank's strength ...

  • Stress Testing Your College Budget - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Stress-Testing-Your-College-Budget.aspx
    ... on your own, run it through a little stress test before you ... Test It: Though you may
    not know the actual expense of ... $1000 and keep it safely in the bank, you'll ...

  • TARP Returns Start To Snowball

    http://stocks.investopedia.com/stock-analysis/2009/TARP-Returns-Start-To-Snowball-SBNY-SNBC-ONB-BMRC0406.aspx
    ... redemption announcement, it performed a stress test with the aid of an outside firm
    to make sure it could afford the loss if capital. The bank redeemed $100 ...

  • How PIIGS Defaults Could Affect The Markets - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/How-PIIGS-Defaults-Could-Affect-The-Markets.aspx
    ... Suddenly you have sovereign risk becoming general bank risk. ... The European Banking
    Authority (EBA) conducted a stress test on 90 different European banks ...

  • Is The American Banking System A Ponzi Scheme In Disguise? ...

    http://financialedge.investopedia.com/financial-edge/0609/Is-The-American-Banking-System-A-Ponzi-Scheme-In-Disguise.aspx
    ... to a $7.5 billion shortfall - far less than the $33.9 billion that Bank of America
    (NYSE:BAC) was required to raise as part of the Fed's "stress test" back in ...

  • 3 Country-Specific ETFs To Avoid

    http://stocks.investopedia.com/stock-analysis/2010/3-Country-Specific-ETFs-To-Avoid-EIS-EIRL-VNM0824.aspx
    ... Europe recently wrapped its banking stress test, where only seven of the 91 tested ...
    weight and that's a glaring weakness considering Anglo Irish Bank has taken ...

  • Economy And Economics Articles | Investopedia

    http://www.investopedia.com/articles/tags/economy_and_economics/
    ... Read More »; Meet The Next World Bank President. The World Bank is essential for
    the fight against global poverty. ... Read More »; The Fed's Stress Test On Banks. ...

  • Economy And Economics Articles | Investopedia

    http://www.investopedia.com/articles/tags/Economy_And_Economics/
    ... Read More »; Meet The Next World Bank President. The World Bank is essential for
    the fight against global poverty. ... Read More »; The Fed's Stress Test On Banks. ...

  • 4 ETFs On Fire Right Now

    http://stocks.investopedia.com/stock-analysis/2009/4-ETFs-On-Fire-Right-Now-URE-UXI-XHB-XLF-GE-BAC-C0429.aspx
    ... path of this ETF will be the government's stress test results. On Tuesday, The Wall
    Street Journal reported that the results could mean that Bank of America ...

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