LSF Lunch Seminar - Stressed Banks

General information

Event date:
14/09/2017 @ 12:30 - 14:00
Event location:
University of Luxembourg – Conference room B.001 (Ground floor) - Weicker Building - 4, rue Alphonse Weicker
Luxembourg, L-2721 Luxembourg
Organizer:
University of Luxembourg
Organizer website:

The banks that are subject to annual regulatory stress tests in the U.S. since 2011. Stressed banks are subject to more stringent capital requirements compared to other banks depending on the assessed riskiness of their portfolios to a regulatory stress scenario. On one hand, stringent capital requirements provide stressed banks with motives to invest in riskier assets with higher expected returns to offset their increased cost of funding originating from costly equity injections. On the other hand, stressed banks are subject to more invasive monitoring by the regulator, who imposes bank-specific capital requirements on the basis of the assessed risk of their individual portfolios.

Monitoring gives incentives to stressed banks to invest in low-risk assets that are less sensitive to the regulatory stress scenario in order to reduce their capital requirement. Our results highlight the importance of regulatory monitoring of banks’ portfolios in parallel to setting more stringent capital requirements.

Registration

The Seminar is free of charge. Please register via e-mail to lsf-events@uni.lu (please specify full name and institution) before 1st September 2017.

Contact

Sophie Lux – Tel: +352 46 66 44 6335

Contact

Association des Banques et Banquiers, Luxembourg

Address

12, Rue Erasme L-1468 Luxembourg

Phone Fax
Opening hours

Monday to Friday from 8:00 to 17:30.