This paper investigates the relationship between credit risk and liquidity risk, based on the potential interdependence between liquid asset ratio and non-performing loans ratio, as well as systemic liquidity risk. The data used cover the period 2007–2012 and the country of study is Greece. We...

The traditional approach to the stress testing of financial institutions focuses on capital adequacy and solvency. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which may not be consistent with those used in solvency...