Coffinet, Jerome; Lin, Surong - In: Journal of Financial Perspectives 1 (2013) 2, pp. 67-80
We propose a stress-testing framework to evaluate the sensitivity of banks’ profitability to plausible but severe adverse macroeconomic shocks. Specifically, we test the resilience of French banks’ profitability over the period 1993–2009. First, we identify the macroeconomic and financial...