Russian Federation: Financial Sector Assessment Program: Technical Note-Stress Testing

International Monetary Fund

No 2016/306, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Note discusses the results of the stress testing carried out as part of the 2016 Financial Sector Assessment Program for the Russian Federation. The stress tests focused on banks, reflecting the structure of the Russian financial sector, which is relatively small and bank dominated. The results showed that the banking system is likely to need additional capital. Even in the baseline scenario, certain banks will need new capital owing to low profitability and increasing credit losses. The required resources are higher in the stress scenarios, but remain manageable. If public funds are needed for recapitalization, there is sufficient fiscal space, provided that fiscal policy remains prudent.

Keywords: ISCR; CR; asset; bank; loan; system assets; asset quality; asset quality adjustment; banking sector assets; bank concentration; capital deficit; banking assets; asset growth; banks' asset portfolio; bottom-up result; impairment charge; asset projection; cross-border bank exposure; Loans; Stress testing; Capital adequacy requirements; Correspondent banking; Market risk; Global (search for similar items in EconPapers)
Pages: 38
Date: 2016-09-22
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