Under the Basel framework banks are required to conduct stress tests for their requirements of potential capital while considering the impact of stress testing scenarios. There could exist inter-linkages among macro- economic indicators and financial performance such that the stressed credit...

We examine the impact of the recently introduced Basel III countercyclical capital buffer (CCyB) on foreign lending activities of Canadian banks. Using panel data for the six largest Canadian banks and their foreign activities in up to 94 countries, we explore the variation in CCyB rates across...