Central bank stress tests

ITN report on Bank of England stress tests January 10th 2017

 

My work on the Bank of England's 2016 stress tests was aired in an ITN story on January 10th 2017: I provided ITN with the results of the stress tests that the Bank would have obtained had it used market values instead of book values.

 

Follow-up letter to Governor Carney, July 8th 2017.

 

Articles and Reports on Central Bank Stress Tests

 

No Stress IV: The Flaws in the Bank of England's 2018 Stress Tests. London: Adam Smith Institute, 3 August 2019. 

 

No Stress III: The Flaws in the Bank of England's 2016 Stress Tests. London: Adam Smith Institute. September 13th 2017. Links to press release and executive summary. This report received a reasonable amount of press coverage. 

 

No Stress II: The Flaws in the Bank of England’s Stress Testing Programme. London: Adam Smith Institute, August 3rd 2016. This report received widespread media coverage the next day: See F. Laven-Morris, “New report on Bank of England stress testing receives blanket coverage,” August 4th 2016.

 

No Stress: The Flaws in the Bank of England’s Stress Testing Programme. London: Adam Smith Institute, June 18, 2015. This report was picked up by the BBC Radio 4 Today Programme, the Financial Times and Russia Today (RT).

 

“Central Bank Stress Tests: Mad, Bad and Dangerous.” Cato Journal, Vol. 35, Number 3 (Fall 2015), pp. 507-524.

 

Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve. Cato Institute Policy Analysis 754, September 3, 2014.

 

Blog Postings and Letters on Central Bank Stress Tests

 

"Accounting Standards and the Stress Tests." Letter to Alex Brazier, the Bank of England Executive Director for Financial Stability and Risk, October 3rd 2017.

 

"Let's Stress Our Banks a Little Bit More, Shall We?" Adam Smith Institute blog, November 28th 2017.

 

"The 2017 Bank of England Stress Tests - What to Expect." Adam Smith Institute blog, November 27th 2017. 

 

"Fed Stress Tests: One Big Public Relations Campaign." American Banker, August 29th 2017. 

 

"The 2017 Stress Tests: Are US Banks Really in Good Shape?" Alt-M, August 17th 2017. This posting is on the U.S. CCAR and DFAST stress tests released in June 2017.

 

"Another Reason Not to Believe the Bank of England's Stress Tests." Adam Smith Institute blog, August 16th 2017.

 

"The Bank of England's Incredible Stress Tests." Adam Smith Institute blog, August 10th 2017. Long version here. 

 

"Market Values and the Stress Tests." Adam Smith Institute blog, July 31st 2017.

 

"Bank of England Stress Tests Inadvertently Reveal the Weakness of the UK Banking System." Adam Smith Institute blog, December 13th 2016.

 

"The Bank of England Fails its Stress Test, Again." Adam Smith Institute blog, December 12th 2016.

 

"Leveraging  Up on Bank Stress (II): Improving the Bank of England's Leverage Ratio Stress Test." Adam Smith Institute blog, March 24th 2016. 

 

"Leveraging  Up on Bank Stress (I): The Bank of England's Leverage Ratio Stress Test." Adam Smith Institute blog, March 16th 2016. 

 

"What Should be the Absolute Minimum Pass Standard in the Bank of England's Stress Test?" Adam Smith Institute blog, March 8th 2016. 

 

"The Bank of England's Stress Tests: An Exercise in Really Weird Accounting." Adam Smith Institute blog, January 27th 2016.

 

"An Introduction to the Bank of England's Stress Tests." Adam Smith Institute blog, January 14th 2016. 

 

"Stress Testing without the Stress - the Bank of England's Stress Tests." Adam Smith Institute blog, January 7th 2016.

 

"The Bank of England Fails its Stress Test, Again." Alt-M, January 6th 2016. 

 

"The Bank of England's Non-Convincing Non-Response to Yesterday's ASI Report on its Stress Tests." Adam Smith Institute blog, June 19th 2015. 

 

"Central Bank Stress Tests Simply Aren't Credible." Cato Podcast, June 5th 2015.

 

 "Models, Damn Models and Statistics, or Math Gone Mad." Cobden Centre Blog, December 12, 2014.