Guernsey: Financial Sector Assessment Program Update-Technical Note on Stress Testing: Banking and Insurance

January 14, 2011

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Format: Chicago

Guernsey: Financial Sector Assessment Program Update-Technical Note on Stress Testing: Banking and Insurance, (USA: International Monetary Fund, 2011) accessed November 21, 2024

Summary

Stress testing (ST) was undertaken as part of the Guernsey Financial sector assessment Program (FSAP) Update in order to assess the resilience of the Guernsey financial system to a variety of potential strains. The approach taken was a simulation of the effect of a potential double-dip recession on solvency of Guernsey banks and insurance companies. The STs assess the sensitivity of banks and insurance companies to single-factor shocks to risk types affecting solvency and liquidity position of institutions. The mission recommends that future STs should be risk-based and that macroprudential analysis should be run on a regular basis.

Subject: Banking, Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Financial services, Market risk, Operational risk, Stress testing, Yield curve

Keywords: Asset price risk, Concentration risk analysis, CR, Credit risk, Global, Interest rate, ISCR, Liquidity risk, Liquidity risk test sample, Market risk, Market risk test, Mortgage loan, No. bank, North America, Operational risk, Parent bank, Persistency risk, Return on equity, Risk type, Stress testing, Test result, Yield curve, Yield curve

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2011/004
Stock No:

1GGYEA2011004
ISBN:

9781455213733
ISSN:

1934-7685

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