Publication: Russian Federation Financial Sector Assessment Program: Stress Testing
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2016-09
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2017-12-07
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This note presents the methodology and results of stress tests of the financial sector carried out as part of the 2016 Financial Sector Assessment Program (FSAP) for the Russian Federation. The stress tests focused on banks, reflecting the structure of the Russian financial sector, which is relatively small and bank-dominated. The stress tests showed that the banking system is likely to need additional capital. Even in the baseline scenario, certain banks will need new capital owing to low profitability and increasing credit losses. The required resources are higher in the stress scenarios, but remain manageable. If public funds are needed for recapitalization, there is sufficient fiscal space, provided that fiscal policy remains prudent. Stress tests should be supplemented by a granular and comprehensive review of banks’ asset portfolios to gauge capitalization needs
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“International Monetary Fund. 2016. Russian Federation Financial Sector Assessment Program: Stress Testing. © International Monetary Fund. http://hdl.handle.net/10986/28978 License: CC BY 3.0 IGO.”
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