Canada: Financial Sector Assessment Program-Stress Testing-Technical Note

International Monetary Fund

No 2014/069, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper examines the stress testing module of the 2013 Financial Sector Assessment Program (FSAP) update for Canada. The IMF report highlights the three major segments of the domestic financial covered during the stress tests. The bank solvency stress tests suggest that while all banks would fall below the Canadian “all-in” Common Equity Tier 1 (CET1) supervisory threshold during severe economic distress, the resulting recapitalization needs are manageable. This IMF report provides recommendations for the Canadian authorities, derived from this joint exercise, to enhance the individual components of their stress testing framework.

Keywords: ISCR; CR; net income; base year; liquidity risk; income statement; interest rate; balance sheet; capital ratio; credit loss; Personal income; Stress testing; Credit risk; Credit; Loans; Europe; Global (search for similar items in EconPapers)
Pages: 101
Date: 2014-03-07
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Citations: View citations in EconPapers (1)

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