Jokivuolle, Esa; Virolainen, Kimmo; Vähämaa, Oskari - Suomen Pankki - 2008
Basel II framework requires banks to conduct stress tests on their potential future minimum capital requirements and … consider ‘at least the effect of mild recession scenarios’. We propose a stress testing framework for minimum capital … requirements. We also emphasize the importance of stress testing future minimum capital requirements jointly with credit losses …