Switzerland: Financial Sector Stability Assessment; imf country Report 14/143; April 16, 2014

 

---

SWITZERLAND
INTERNATIONAL MONETARY FUND
51 
Table 15. Switzerland: Solvency Stress Test Matrix (Concluded) 
Behavioral 
adjustments 
 
Changes in RWAs take into 
account credit growth and 
changes in risk weights based 
on internal models. 
 
Constant balance sheet 
composition.  
 
No dividend payout. 
 
No management actions 
considered. 
 
Changes in RWAs take into 
account credit growth and 
changes in risk weights based 
on authorities’ models. 
 
Constant balance sheet 
composition.  
 
Pre-defined dividend payout 
based on income after stress. 
 
Changes in RWAs take into 
account credit growth and 
changes in risk weights based on 
IRB models. 
 
Constant balance sheet 
composition. 
 
Pre-defined dividend payout 
based on income after stress and 
capital buffer. 
Regulatory 
standards 
 
Hurdle rates based on Basel III 
and Swiss regulatory minimum 
for CET1 capital ratios. 
 
 
Hurdle rates based on 
Basel III and Swiss regulatory 
minimum for CET1 capital 
ratios. 
 
Basel II/III IRB rules. 
 
Hurdle rates based on Basel III and 
Swiss regulatory minimum for 
CET1 capital ratios. 
 
Basel II/III IRB rules. 
Results 
 
Capital adequacy ratio (CAR) 
shortfall (if applicable). 
 
Pass or fail; percentage of 
assets that fail. 
 
CAR, shortfall (if applicable), 
and buffer changes; system-
wide and by bank type. 
 
Pass or fail (number of banks); 
percentage of assets that fail. 
 
CAR, shortfall (if applicable), and 
buffer changes; system-wide and 
by bank type. 
 
Pass or fail (number of banks); 
percentage of assets that fail. 
Source: IMF staff.