Bernhardsen, Eivind; Syversten, Bjorne Dyre - In: International Journal of Central Banking 5 (2009) 3, pp. 111-138
This paper describes Norges Bank’s micro stress-testing framework for assessing the Norwegian banking sector’s losses on loans to the nonfinancial enterprise sector. Using projected macro variables and a stock-flow approach, annual financial statements of every firm in Norway are projected...