Economists at the Federal Reserve contest the idea that annual stress tests have become more severe over time, arguing the higher level of capital depletion reported by participating banks in recent iterations is not driven by a toughening up of the scenarios used.
The staffers show that the total decline to the Common Equity Tier 1 capital ratio posted by a sample of banks that took part in the 2018 round of the Comprehensive Capital Analysis and Review was 6.1%, the largest to date. However,
- Libor leaders: how seven firms are tackling the transition
- Libor leaders: ABP crafts blueprint for corporate Libor switch
- Warrants issuers battle algo predators in Hong Kong
- Libor replacement: a modelling framework for in-arrears term rates
- Swaps data: a new era of competition in interest rate futures