Liquidity stress test
1. Treasury - liquidity risk - liquidity risk management - stress testing - regulation - European Securities and Markets Authority (ESMA) - UK - Financial Conduct Authority (FCA).
(LST).
In the regulatory context, the European Securities and Markets Authority (ESMA) defines liquidity stress testing as a risk management tool within the overall liquidity risk management framework of an asset manager which simulates a range of conditions, including: normal and stressed (i.e. extreme, unlikely or unfavourable) plausible conditions, to assess their potential impact on the funding (liability), assets, overall liquidity of a fund, and - importantly - the necessary follow-up action.
The UK's Financial Conduct Authority (FCA) follows this definition as well.
2. Treasury - liquidity risk - liquidity risk management - stress testing.
Similar activity in other contexts.
See also
- AIF
- Asset manager
- Back test
- Biennial exploratory scenario
- Black swan
- European Securities and Markets Authority (ESMA)
- Financial Conduct Authority (FCA)
- Fund
- Idiosyncratic stress
- Liquidity
- Liquidity risk
- Liquidity stress
- Model
- Reverse stress test
- Risk management
- Scenario analysis
- Sensitivity analysis
- Shock
- Stress
- Stress test
- System-wide exploratory scenario (SWES) UK
- Undertaking for collective investments in transferable securities (UCITS)
