Portugal: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis

International Monetary Fund

No 2026/203, IMF Staff Country Reports from International Monetary Fund

Abstract: The Financial Sector Assessment Program (FSAP) for Portugal conducted a comprehensive systemic risk analysis and assessment of the resilience of the banking sector. This included a full-fledged top-down solvency stress test to evaluate banks’ capital adequacy under two severe adverse macrofinancial scenarios. Alongside this, targeted sensitivity analyses were conducted to examine risks not fully captured in the solvency tests, including debt revaluations at amortized cost, potential losses from common large exposures, and quasi-reverse stress tests. Cash flow-based liquidity stress tests assessed banks’ resilience to general risk aversion, sovereign market distress, and idiosyncratic shocks to their funding base. A targeted assessment analyzed vulnerabilities across the household, corporate, and real estate sectors, and interconnectedness analysis examined the structural evolution of cross-sectoral linkages in the financial sector.

Keywords: solvency Stress Test; NFC sensitivity; fair value; bank liquidity; NFC sector; IMF staff; profit and loss; Loans; Stress testing; Credit; Middle East; Global (search for similar items in EconPapers)
Pages: 108
Date: 2026-07-27
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=578114 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2026/203

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().