COVID-19 and EMDE Corporate Balance Sheet Vulnerabilities: A Simple Stress-Test Approach

Abstract The issue of systemic risk regulation and management has gained substantial attention following the latest financial crisis. In the case of the EU it became crucial to deal with the systemic risk problem on a supranational level since the banking sectors of the member countries are highly integrated. While substantial measures have been undertaken to mitigate systemic risk in the EU, the discussion of further reforms continues. This study’s goal is to assess basic indicators of systemic risk in the EU banking sector by using three complementary methods: a forward-looking stock market data analysis, an EU-stress test analysis for systemically important banks, and an empirical investigation of the relation between banking regulation and systemic risk as measured by bank balance sheet indicators. The results lead to a recommendation of further necessary regulatory reforms, which appear in the conclusion.

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Grade III injuries of the lateral ligaments of the ankle: the incidence and a simple stress test.

Emergency Medicine Journal ◽

10.1136/emj.3.4.247 ◽

1986 ◽

Vol 3 (4) ◽

pp. 247-251 ◽

Cited By ~ 8

Author(s):

C L Muwanga ◽

M Hellier ◽

D N Quinton ◽

J P Sloan ◽

A F Dove

Keyword(s):

Stress Test ◽

Lateral Ligaments ◽

Simple Stress ◽

Grade Iii

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Importance of balance sheet composition in stress test estimates

Journal of Economic Science Research ◽

10.30564/jesr.v1i1.310 ◽

2019 ◽

Vol 1 (1) ◽

Author(s):

Salvador Climent-Serrano ◽

Elisabeth Bustos-Contell ◽

Gregorio Labatut-Serer

Keyword(s):

Stress Test ◽

Balance Sheet ◽

Econometric Models ◽

Stress Tests ◽

Economic Cycle ◽

Macroeconomic Variables ◽

Explanatory Variables ◽

Sheet Structure

The stress tests are based on macroeconomic variables for the estimations of the results. However, there are other factors that may influence them. This paper studies the influence of the balance sheet structure in the NPL and the loss caused by the NPL using econometric models. The objective is to research how they affect the aggregates in the balance sheet to the delay in payment and the the provision for impairment, distinguishing these effects according to the economic cycle, so that can be applied to the stress test. The results show that the Balance sheet structure is important in delinquency and losses caused by it, especially in respect of stockholders’ funds, ECB resources and the account Non-current assets held for sale. It also highlights the influence of the economic cycle and the different behavior of the NPL and the losses due to default with respect to the same explanatory variables.

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The New Rules of Capital Adequacy Basel III from the Perspective of Leasing Companies in Europe and Czech Republic

Financial Assets and Investing ◽

10.5817/fai2019-2-2 ◽

2019 ◽

Vol 10 (2) ◽

pp. 21-41

Author(s):

Martin Svítil

Keyword(s):

Czech Republic ◽

Stress Test ◽

Balance Sheet ◽

Capital Requirements ◽

Capital Adequacy ◽

European Federation ◽

Basel Iii ◽

The Czech Republic ◽

Share Capital ◽

Leasing Company

Some significant changes to the Basel III regulatory framework (called Basel IV) will come into effect during the 2022 to 2027 period. In its first part, this article shows the opinion of the European Federation of Leasing Company Associations Leaseurope on Basel IV. In its second part, this paper evaluates the situation of the largest leasing companies on the Czech market using methods of financial analysis.The results of several studies published by Leaseurope clearly show that the risk associated with the provision of liabilities through leasing is significantly lower than the risk calculated by the capital adequacy calculation for Basel rules. For this reason, the Leaseurope federation prepared concrete proposals for changes in the rules so that the regulation better corresponds to the actual risks taken.The second part of the article analyzes the situation of leasing companies in the Czech Republic in terms of capital, capital adequacy and compliance with Basel rules. It shows the state of the capital adequacy of the largest leasing companies operating on the Czech market using simplified indicators of the ratio of Equity / Balance sheet total and Equity / Receivables. As a complementary indicator, the ratio of Share capital / Balance sheet total is also used. Furthermore, a simplified stress test based on 5% and 10% decline in net receivables and coverage of this decline from equity, respectively, was performed.The results show that leasing companies operating on the Czech market would probably have no problem meeting the considered tightening of capital requirements. Several exceptions are mentioned in the text.

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Multi-Agent Financial Network (MAFN) Model of US Collateralized Debt Obligations (CDO)

Banking, Finance, and Accounting ◽

10.4018/978-1-4666-6268-1.ch030 ◽

2014 ◽

pp. 561-590 ◽

Cited By ~ 1

Author(s):

Sheri M. Markose ◽

Bewaji Oluwasegun ◽

Simone Giansante

Keyword(s):

Systemic Risk ◽

Stress Test ◽

Balance Sheet ◽

Collateralized Debt Obligations ◽

Financial Network ◽

Balance Sheets ◽

The Us ◽

Credit Risk Transfer ◽

Multi Agent ◽

Collateralized Debt

A database driven multi-agent model has been developed with automated access to US bank level FDIC Call Reports that yield data on balance sheet and off balance sheet activity, respectively, in Residential Mortgage Backed Securities (RMBS) and Credit Default Swaps (CDS). The simultaneous accumulation of RMBS assets on US banks' balance sheets and also large counterparty exposures from CDS positions characterized the $2 trillion Collateralized Debt Obligation (CDO) market. The latter imploded at the end of 2007 with large scale systemic risk consequences. Based on US FDIC bank data, that could have been available to the regulator at the time, the authors investigate how a CDS negative carry trade combined with incentives provided by Basel II and its precursor in the US, the Joint Agencies Rule 66 Federal Regulation No. 56914, which became effective on January 1, 2002, on synthetic securitization and Credit Risk Transfer (CRT), led to the unsustainable trends and systemic risk. The resultant market structure with heavy concentration in CDS activity involving 5 US banks can be shown to present too interconnected to fail systemic risk outcomes. The simulation package can generate the financial network of obligations of the US banks in the CDS market. The authors aim to show how such a Multi-Agent Financial Network (MAFN) model is well suited to monitor bank activity and to stress test policy for perverse incentives on an ongoing basis.

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Midcarpal Instability: Is Capitolunate Instability Pattern a Clinical Condition?

Journal of Hand Surgery (European Volume) ◽

10.1016/s0266-7681(96)80096-9 ◽

1996 ◽

Vol 21 (2) ◽

pp. 197-201 ◽

Cited By ~ 20

Author(s):

H. ONO ◽

L. A. GILULA ◽

B. A. EVANOFF ◽

D. GRAND

Keyword(s):

Clinical Condition ◽

Stress Test ◽

Clinical Findings ◽

Wrist Pain ◽

Tender Points ◽

Short Term ◽

Long Term Follow Up ◽

Simple Stress

Five cases are presented with clinical findings of capito-lunate instability pattern of the wrist. All painful areas and tender points were dorsal, but variable in location and intensity. All plain radiographs and fluoroscopic instability series were normal. None of the cases had an explanation for the dorsal wrist pain other than a positive dorsal capitate-displacement test. Four out of five cases were treated in a cast for 4 weeks and two had subsequent splint immobilization. Although at short-term follow-up two of these five patients became pain-free, none was completely pain-free at long-term follow-up. Three patients treated with a cast had long-term follow-up. Only one could perform his original work. These findings support a clinical condition of midcarpal instability producing dorsal wrist pain reproduced with a simple stress test. Conservative, non-operative treatment will not usually produce long-term pain relief.

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