Bruegel Event Recordings

At this event Anatoli Segura Velez from Banca D'Italia discussed a new proposal on how to integrate the two tools in a macroprudentially coherent and transparent manner. He proposed in particular the introduction of a bank-specific Stress Test Buffer that adds to those in Basel III Pillar 1. He also emphasized the need to conduct stress tests with a procyclical severity, meaning that stress test severity is higher during booms. The presentation was followed by comments and a Q&A session.