An International Perspective on the Future of Bank Stress Testing

On November 16, 2018, in partnership with Harvard Law School, PIFS hosted a special roundtable event entitled, “An International Perspective on the Future of Bank Stress Testing.” Participants from the United States, United Kingdom, Japan, and the European Union attended. They included senior regulators, senior industry representatives, and distinguished academics who discussed critical issues in stress testing.

Roundtable Session Topics:

  • Scenarios: How Should Regulators Achieve Appropriate Stringency While Limiting Unintended Consequences?
  • Models: How Should Stress Tests Incorporate the Results from Bank Models and Regulator Models?
  • Capital Requirements: How Should Stress Test Results Be Incorporated into Capital Requirements?
  • Transparency: What are the Benefits and Challenges with Greater Transparency of Stress Test Scenarios and Models?

Representative Participants Included:

  • Randal K. Quarles, Vice Chair for Supervision, Board of Governors of the Federal Reserve System
  • Klaus Dullmann, Head of SSM Risk Analysis Division, European Central Bank
  • Wataru Hirata, Global Economic Research Division, Bank of Japan
  • Mario Quagliariello, Director of Economic Analysis and Statistics, European Banking Authority
  • Alison Scott, Head of Policy, Strategy & Implementation Division, Bank of England

Roundtable Event Materials:

An International Perspective on the Future of Bank Stress Testing Agenda
An International Perspective on the Future of Bank Stress Testing Attendee List
Keynote Remarks by Rodgin Cohen
Keynote Remarks by Randal K. Quarles “Beginning Stress Testing’s New Chapter”
Overview of Stress Testing Frameworks and Practices