Sweden Financial Sector Assessment Program Update: Technical Note on Contingent Claims Analysis Approach to Measure Risk and Stress Test the Swedish Banking Sector. [electronic resource] : - Washington, D.C. : International Monetary Fund, 2011. - 1 online resource (33 p.) - IMF Staff Country Reports; Country Report ; No. 11/286 . - IMF Staff Country Reports; Country Report ; No. 11/286 .

This paper describes the application of contingent claims analysis (CCA) and systemic CCA to the top four commercial banks in Sweden. The balance sheet stress tests for four major banks were complemented with tests based on the CCA framework, a risk-adjusted balance sheet relating bank asset values to equity value, default risk, and bank funding costs. Even though the results show that banks are found to be resilient to shocks, more work on systemic risk models could help analyze systemic risk under stress scenarios.

146390357X : 18.00 USD

1934-7685

10.5089/9781463903572.002 doi


Bank Assets
Bank Creditors
Banking
Correlation
Probability


Sweden

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