ECB finds gaps in geopolitical stress-testing frameworks

















































ECB finds gaps in geopolitical stress-testing frameworks – Risk.net



Skip to main content




Risk.net

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


Chessboard against global map surrounded by EU stars

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading…

Back to Top

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *