The interrelationship between risks and bank efficiency has received much attention in banking literature for years, especially after the Asian financial crisis in 1997 and the global financial crisis (GFC) in 2008. This study collected and analyzed the data of 247 banks of 12 developed and...

Stress testing is becoming the principal diagnostic tool for bank risk management and capital adequacy requirements throughout the world. Supervisors are conducting stress test exercises in order to access the financial robustness of individual banks as well as possible vulnerabilities in the...

A technical note on the stress test of Israel’s banking, insurance, and pension sectors is presented. The Israel Financial Sector Assessment Program Update stress testing exercise comprises a comprehensive analysis of solvency and liquidity risks of key banking and insurance institutions....