The Bank’s ‘stress' tests

Kevin Dowd  |  August 12, 2019

“The purpose of the stress tests is, in essence, to persuade us that the banking system is in good shape on the basis of a make-believe exercise which purports to show what might happen in the event of a supposed severe stress scenario as modelled by a central bank with a dodgy model and a vested interest in showing that the banking system is in great shape thanks to its own wise policies. … All the stress tests provide is employment for modellers and false risk comfort for the public.” 

Read the full article on: The Cobden Center (UK)

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