Macro-feedback effects have been identified as a key missing element for more effective macro-prudential stress testing. To fill this gap, this paper develops a framework that facilitates the analysis ...

One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with meaningful macro-financial linkages, i.e., taking into account spillover effects and ...

Stress tests can be used to test the individual resilience of a single entity or to assess the system-wide vulnerabilities of a network. This paper examines the role of supervisory stress testing of ...