I would love to investigate the stories that the recent Cebs stress tests have not been tough enough on European banks.
Is this accurate?
If so, do you think this was a deliberate decision?
In what way could the process have been improved?
If you have an opinion on this, even if it is just to help add some context for us, I would love to hear from you.
Feel free to either post in this discussion, contact me through the site or you can email me directly at mark.sands@incisivemedia.com
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As a second point, have Cebs taken enough steps to factor operational risk into their methodology?
This is obviously largely a credit risk exercise, but Cebs summary report states that "capital requirements for operational risk were also taken into account in the exercise by computing a proxy of year-on-year changes in operating profit of the participating institutions, with the actual capital charge as of year-end of 2009 acting as a floor."
Is this sufficient or is more consideration needed?
Check this article out - looks like a solid analysis. Probably Risk managers in our community can add something from their experience and analysis.
http://www.actionforex.com/analysis/daily-forex-fundamentals/implic...