How Vulnerable Are Financial Institutions to Macroeconomic Changes? : An Analysis Based on Stress Testing
Journal article
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http://hdl.handle.net/11250/2504526Utgivelsesdato
2002Metadata
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Macroeconomic changes have been an important reason why financial institutions have experienced losses on loans to households and enterprises. This article contains an analysis of financial institutions’ vulnerability in two stress test scenarios using a new analytical framework. The results indicate that a fall in property prices, higher interest expenses and stronger wage growth will lead to higher losses on loans to enterprises and households. The analytical methods used here are still being developed, and the results must be interpreted with caution.