Maarten van Oordt - Latest
November 14, 2018
Financial System Resilience and House Price CorrectionsWe use models to better understand and assess how risks could affect the financial system. In our hypothetical scenario, a house price correction and elevated financial stress weigh on the economy. An increased number of households and businesses have difficulty repaying loans. Nonetheless, the large banks remain resilient.
Calibrating the Magnitude of the Countercyclical Capital Buffer Using Market-Based Stress TestsHow much capital do banks need as a buffer to absorb severe shocks? By using historical stock market data, market-based stress tests help estimate the magnitude of capital buffers necessary to absorb severe but plausible shocks.