Cybersecurity
Big U.S. Banks Are Letting Stress Tests Make Decisions for Them
- Tests now used by 78% of firms to assess concentrations
- Regulatory tests even used in making merger decisions
Cybersecurity is seen as a risk that would increase most in importance over the next two years.
Photographer: Krisztian Bocsi/Bloomberg
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If you’re a bond trader at a major bank, the next time you ask for an increase in your position limit, the answer is likely to be based on regulatory stress tests.
Seventy-eight percent of global banks now use the tests to assess concentrations and set limits internally, according to a Deloitte survey to be released Wednesday. That’s up from 67 percent in 2012, the first time the same question was posed. Eighty-seven percent of respondents said they use capital stress tests for strategy and business planning, up from 68 percent seven years ago.