The propagation of financial crises has made Basel III and stress testing a central focus across ASEAN-5. The primary objective of the thesis was twofold; to assess the cost impact of Basel III on bank capital, lending spreads, and steady state output across ASEAN-5; and to construct a macro...

The main results of the macro stress testing exercise in this paper reveal that Malaysia's banking sector is resilient, well diversified, and highly interconnected. Further, Malaysia has a thriving equity market, large bond market and growing private debt securities. Main results of the baseline...

The most recent global credit mishap of 2008, the worst financial catastrophe of the 21st century, succeeded the Great Depression of the 1930s as the worst event of all times, and used in stress testing under severely adverse scenario analysis. Rather promoting financial stability, the Basel...

A banking operation is at the epicenter of financial intermediation, and there is no perfect substitute for it in capital markets. Because a banking operation revolves around a constant inventory of risks, in the event of a financial or economic crisis, banks therefore get hit as the first line...

In the post-WWII (since the 1950s), there have been over 400 banking, currency, and sovereign debt crises, which translates to about 10 crises per annum; furthermore, the combined cost of the last five crises since the late 1990s is in excess of $30 trillion, but when the cost of the COVID-19...