results highlight the importance of the starting level of bank capital, bank asset quality, and banks’ adjustments for the …

the US and EU-wide tests -- Criticisms of stress-testing methodology and of the measurement of bank capital -- Criticism …

conditions, and the regulatory environment. We use this model to simulate bank credit losses for stress-testing purposes and to … that can be made to capture country-specific institutional features. The model uses bank portfolio data broken down by risk …

Since the European debt crisis economists and politicians discuss intensively the sovereign-bank nexus. The high … exposure on bank stability. This paper provides a new way to use European stress test data to study this relationship. In … addition, we explore the effect on a bank’s probability of default if the existing capital requirement privilege for EU …