Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60748
Authors: 
Hirtle, Beverly
Schuermann, Til
Stiroh, Kevin
Year of Publication: 
2009
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 409
Abstract: 
A fundamental conclusion drawn from the recent financial crisis is that the supervision and regulation of financial firms in isolation - a purely microprudential perspective - are not sufficient to maintain financial stability. Rather, a macroprudential perspective, which evaluates and responds to the financial system as a whole, seems necessary, and the ongoing discussions of regulatory reform in the United States underscore this view. The recently concluded Supervisory Capital Assessment Program (SCAP), better known as the bank 'stress test,' is one example of how the macro- and microprudential perspectives can be joined to create a stronger supervisory framework that addresses a wider range of supervisory objectives. This paper reviews the key features of the SCAP and discusses how they can be leveraged to improve bank supervision in the future.
Subjects: 
Bank stress test
macroprudential
SCAP
bank supervision
JEL: 
G21
G28
G20
Document Type: 
Working Paper

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