FSA has published a statement on its use of stress tests following publication of stress test results from the US. It explains how it uses stress tests and the parameters of the tests. It also looks at how the UK approach fits in with European initiatives. It explains how tests can show weaknesses in specific institutions and CEBS’ initiative (with which it will cooperate) to use tests to assess the aggregate health of the banking system.
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FSA makes statement on stress tests
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