Spain: Financial Sector Assessment Program-Technical Note-Stress Testing Banking System Resilience
Electronic Access:
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Summary:
This Technical Note discusses the results of the stress testing of banking system resilience in Spain. The results indicate that some banks may have difficulty enduring additional pressures on their profitability. In addition, some banks are vulnerable to market losses arising from a rapid increase in interest rates, given their significant exposures to fixed income securities. Near-term funding and liquidity risks seem limited, but funding challenges are likely to grow. Several banks are heavily reliant on central bank funding. Based on these findings, the authorities are encouraged to continue to monitor closely interest rate and government bond market risks in their stress testing exercises.
Series:
Country Report No. 2017/342
Subject:
Banking Capital adequacy requirements Credit risk Financial regulation and supervision Financial sector policy and analysis Liquidity requirements Liquidity stress testing Stress testing
English
Publication Date:
November 13, 2017
ISBN/ISSN:
9781484327197/1934-7685
Stock No:
1ESPEA2017012
Pages:
51
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