The Handbook maps this bourgeoning field, from the models used to the institutional environment needed to successfully deploy them, and also identifies new challenges and opportunities. Its contributors, a group of leading thinkers from multiple disciplines in the public, private and academic sectors, include two former US Treasury Secretaries and a Nobel Laureate as well as upcoming thinkers in the field.
The second day of the conference offered an occasion to mark the 20-year anniversary of the IMF’s “Financial Sector Assessment Program” (FSAP). FSAP assessments have the twin goals of gauging the stability and soundness of the financial sector and to assess its potential contribution to growth and development. In line with these objectives, the debate on this second day of the conference broadened to include a discussion on emerging financial stability risks in areas as diverse as monetary policy in a low-rate environment, rising corporate debt burdens, and climate risk – all areas singled out in the Global Financial Stability Report that the IMF presented at the Annual Meetings on the day after the conference.
With hundreds of visitors from all over the world in attendance, the conference marked a unique opportunity to reflect on the rapid advent of financial stress testing and to consider how, in the years ahead, these stress tests should evolve to help regulators and private sector practitioners to keep financial institutions, and the financial system as a whole, safe.
Thom Wetzer tweeted about the conference on his Twitter account @ThomWetzer