Belgium: Technical Note on Stress Testing the Banking and Insurance Sectors

International Monetary Fund

No 2013/137, IMF Staff Country Reports from International Monetary Fund

Abstract: The Belgium Financial Sector Assessment Program (FSAP) stress testing exercise examines a financial sector that remains in a state of transformation. Domestic economic challenges remain sources of continued uncertainty as the banking sector consolidates and reduces funding risks. Insurers face challenges from adverse economic and business conditions. Solvency and funding shocks under different macroeconomic scenarios were assessed. Both banking and insurance tests underscore the importance of sovereign risk for financial stability. The implementation of stress tests needs to be closely aligned with the resolution and recovery planning.

Keywords: ISCR; CR; central bank; banking sector; hurdle rate; financial asset; interest rate; credit risk; balance sheet; real GDP; sovereign bond; financial market; liquidity risk; capital ratio; BNP Paribas; Stress testing; Basel III; Solvency stress testing; Solvency; Liquidity requirements; Europe (search for similar items in EconPapers)
Pages: 104
Date: 2013-05-24
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Citations: View citations in EconPapers (2)

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