EXECUTIVE SUMMARY 1. The importance of enhancing systemic risk oversight and building effective macroprudential tools is widely recognized. In the United States, where the financial markets display a greater degree of heterogeneity than elsewhere, and supervision and regulation are split amongst...

EXECUTIVE SUMMARY1 1. A range of stress tests was used to quantify the potential impacts of risks and vulnerabilities in bank and nonbank sectors. The stress testing exercise reflected a broader evaluation of potential risks, embodied in the Risk Assessment Matrix (Appendix I). To provide a more...