Stress testing and bank lending

Stress tests convey information about the strictness of future tests, creating incentives for banks to alter their future lending behavior. Regulators recognize and use this influence: they may conduct softer stress tests to encourage lending or tougher stress tests to reduce risk-taking. This infor...

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Bibliographic Details
Main Authors: Shapiro, J, Zeng, J
Format: Journal article
Language:English
Published: Oxford University Press 2023