Banque centrale du Luxembourg - Stress testing and contingency funding plans: an analysis of current practices in the Luxembourg banking sector

Numéro	42
Date	December 2009
Auteur	Franco Stragiotti
Résumé	This paper analyzes the current practices adopted by a sample of Luxembourg banks on liquidity stress testing and contingency funding plans. The paper covers four main topics: liquidity stress testing coverage, scenario design, policy issues and contingency funding plans. We compare, when relevant, these results to a larger sample of EU peer banks. The results, collected through a questionnaire addressed to forty-seven banking groups, are analyzed by the means of the principal component technique. The paper also highlights the main features and shortcomings of local banks in this field.
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