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Articles on Stress testing

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Banks around the world are evaluating the potential impact of climate change and government regulation on their lending practices. Energy-intensive sectors, like coal and oil, tend to suffer most. (AP Photo/Martin Meissner)

What is a climate stress test? A sustainable finance expert explains

Regulators, banks and policy-makers use stress tests to uncover weak points in how financial institutions operate and identify changes that will help buffer them from harm.
In bank stress tests, what’s worse: runs or lemons (the other kind)? Lemons via www.shutterstock.com

Runs versus lemons: why US bank stress tests succeeded while Europe’s failed

US regulators chose to reveal detailed information to the public about the state of the banks. They were able to be so transparent, without triggering a run, because of a strong fiscal backstop.

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