ECB finds gaps in geopolitical stress-testing frameworks
Skip to main content

Current methods fail to properly capture impact of geopolitical stress on liquidity

The European Central Bank’s first ever geopolitical reverse stress test has sparked a debate over whether eurozone lenders are correctly modelling liquidity and funding risks.
“The reverse stress test revealed that solvency-liquidity interactions generally are not well-captured in many banks’ stress-testing frameworks. This is an area where further improvements are needed,” the ECB wrote in a July
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
Most read articles loading…
Back to Top