Annual stress tests have become a regular part of the supervisors' toolkit following the global financial crisis. We investigate their capital market implications in the United States by looking at price and trade reactions, information asymmetry and uncertainty indicators, and bank activities. The evidence we present supports the notion that there is important new information in stress tests, especially at times of financial distress. Moreover, public disclosure seems to help reduce informational asymmetries. Importantly, public disclosure of stress test results (and methodology) does not seem to have reduced private incentives to generate information or to have led to distorted incentives.--Abstract
Notes
"December 2015."
"Research Department."
Bibliography
Includes bibliographical references (pages 20-21)
Notes
Online resource; title from pdf title page (IMF.org Web site, viewed February 2, 2016)
