IDEAS home Printed from https://ideas.repec.org/p/boj/bojrev/rev20e09.html
   My bibliography  Save this paper

Supervisory Simultaneous Stress Testing Based on Common Scenarios

Author

Listed:
  • Financial System and Bank Examination Department of the Bank of Japan

    (Bank of Japan)

  • Strategy Development and Management Bureau, and Supervision Bureau of the Financial Services Agency

    (Financial Services Agency)

Abstract

In light of the experience of the 2008 global financial crisis, the use of stress testing has become widespread among financial authorities in major jurisdictions as a central tool in assessing the resilience of systemically important financial institutions. In Japan, too, given that major banks' risk profiles have become more diversified and complex in recent years as they have expanded their overseas activities and non-commercial banking businesses within their groups, it is becoming ever more important to use stress testing for assessing banks' resilience and ensuring that risk management capabilities are put in place. This paper outlines the supervisory simultaneous stress testing based on common scenarios, an exercise newly started by the Bank of Japan and the Financial Services Agency, describing its background, differences in the institutional arrangements from the United States and Europe, and the role of benchmarking and horizontal reviews.

Suggested Citation

  • Financial System and Bank Examination Department of the Bank of Japan & Strategy Development and Management Bureau, and Supervision Bureau of the Financial Services Agency, 2020. "Supervisory Simultaneous Stress Testing Based on Common Scenarios," Bank of Japan Review Series 20-E-9, Bank of Japan.
    • Handle: RePEc:boj:bojrev:rev20e09
    as

    Download full text from publisher

    File URL: https://www.boj.or.jp/en/research/wps_rev/rev_2020/data/rev20e09.pdf
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boj:bojrev:rev20e09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bank of Japan (email available below). General contact details of provider: https://edirc.repec.org/data/bojgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.