Latest news with #stressTest
Bloomberg
3 days ago
- Business
- Bloomberg
Weathering the Storm: Climate Risk Stress Tests
Extreme weather has always meant extreme risks for businesses and investors. Yet climate change has varied the calculus, and many businesses are facing new, potentially existential risks as the world and the energy transition heat up. As such, central banks and financial supervisors have begun conducting climate risk stress tests, to ensure these institutions are capable of mitigating the potential impacts of a changing climate. But what do these tests entail, which markets have been the most proactive in conducting them, and what exactly is 'climate risk' anyway? On today's show, Tom Rowlands-Rees is joined by Tifenn Brandily, BloombergNEF's head of transition risk and alignment, and special guest Edo Schets, Bloomberg's head of climate, nature and regulatory financial solutions, to discuss findings from the note 'Climate Risk Stress Test Review'.
Irish Times
4 days ago
- Business
- Irish Times
EU plans sweeping stress test of non-banks
European Union (EU) regulators are planning their first stress test to look for vulnerabilities in the financial system outside of banks, reflecting fears about the rapid growth of less regulated groups such as hedge funds and private equity. The plans by European authorities to examine the impact on the wider financial system of a potential market crisis, which would also include pension funds and insurers, follow a similar debut exercise by the Bank of England last year. Officials at the EU's main financial watchdogs are still discussing the details of such a system-wide stress test of non-bank institutions, but they are optimistic that it could be launched next year, according to two people involved in the talks. The move is likely to raise serious concerns among hedge funds, private credit groups and money market funds that they could be subjected to greater scrutiny and restrictions by European regulators in the future. READ MORE Since the 2008 financial crisis, the provision of loans has shifted from banks' balance sheets towards other firms that behave like traditional lenders but are more lightly regulated. Non-banks accounted for about a quarter of the total €19 trillion stock of loans in the euro zone at the end of 2023, according to the European Central Bank (ECB), which said 'more and more loans are being provided by insurance corporations and pension funds'. [ Total bank losses from Archegos implosion exceed $10bn Opens in new window ] Supervisors are growing increasingly concerned about the opacity and potential risks these firms could present, as well as links back to the banking system. Lending by euro zone banks to such non-bank firms has tripled since 1999 to reach €6 trillion by the end of 2023. Non-banks have been central to several episodes of market turmoil in recent years, including a dash-for-cash in bond markets after the pandemic hit, the collapse of family office Archegos Capital Management three years ago, and a liquidity crunch at energy traders after Russia invaded Ukraine. 'We're at a critically low level of housing stock' for buyers and renters Listen | 33:06 'We've seen some crisis episodes . . . where liquidity risk spillovers came from the NBFI, non-bank financial intermediation space,' Claudia Buch, chair of the ECB's supervisory board, told the European Parliament in a recent hearing. 'So, it's important that this is also well understood and well regulated,' Buch said. 'So not all NBFIs are more risky than banks or other financial institutions, but we need to address the risks there in the right way and also the regulation needs to be targeted to those risks.' EU regulators also worry that the region has been slow to tighten rules for money market funds, which are an important source of funding for banks, leaving them with lower minimum liquidity requirements than those in the US and UK. Some national authorities in Europe have already announced they are planning to launch a similar stress test of so-called non-bank financial intermediaries (NBFI), including those in France. The EU exercise would build on the specific sector-focused stress tests already carried out regularly for banks, insurance companies, money market funds and clearing houses in the 27-country bloc. The aim is to examine how a crisis would spread between different parts of the financial system and whether this could magnify the shock rather than absorbing it. Discussions have included the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the ECB, as well as the European Commission and the European Systemic Risk Board. The regulators and the commission all declined to comment. The commission said on Friday it would delay the implementation of tougher capital requirements for banks' securities trading businesses by a year until early 2027. The delay will allow Brussels to wait for clarity on whether the US will go ahead with the rules agreed by global regulators on the Basle Committee on Banking Supervision. The Bank of England (BoE) involved more than 50 City of London institutions in its so-called system-wide exploratory scenario – which included the theoretical default of a hedge fund – to model how a period of stress would ripple through non-bank firms. City firms were relieved when the BoE said resilience was 'comparatively high' in liability-driven investment funds in pension schemes, which had caused a crisis in gilt markets two years earlier. But it also warned that fire sales of assets by pension funds, hedge funds and other investors could magnify a market crisis, especially as many had 'mismatched expectations' about their ability to raise cash in a meltdown. – Copyright The Financial Times Limited 2025
Health Line
20-05-2025
- Health
- Health Line
Your Guide to Stress Test Results by Age
A stress test measures how well your heart works when put under stress. It is ordered to assess exercise tolerance, see if your heart can respond to demands, or test if heart medications are working. When you get your stress test results, a doctor will compare your results with the ones of other people your age. Keep reading to find out more about your stress test results based on your age. How do you read stress test results? During a stress test, a doctor will monitor several key vital signs. These include your: heart rate heart rhythm blood pressure A doctor will also assess your symptoms during the test, asking you to report symptoms such as chest pain. Doctors are specifically looking at your vital signs for ischemia, or poor oxygen and blood flow to the heart. Doctors may use different scales to report your results. Some stress test results will simply say 'positive' (meaning there was something concerning about your stress test) or 'negative' (meaning your stress test was normal). It's possible a doctor could declare your test nondiagnostic. This is true if you can't achieve 85% of your maximum heart rate but don't experience any electrocardiogram (EKG) changes that suggest you're experiencing ischemia. Another stress test calculation is the Duke treadmill score. The key components of this score include: exercise duration in minutes subtracted by five times the maximal deviation of the ST-segment on an EKG subtracted by four times the angina index (where 0 = no angina; 1 = non-limiting angina; and 2 = angina-limiting exercise) If your score is less than or equal to −11, you're at high risk of cardiac complications. If your score is −10 to 4, you're at intermediate risk of complications, and if your score is greater than 5, you're at low risk. Stress test results by age chart Most doctors follow the Bruce protocol for stress testing. This involves starting on a treadmill at a speed of 1.7 miles per hour and a 10% incline. The person assisting you with your test will increase the speed and angle of the incline every 3 minutes until you reach your target heart rate. The likelihood of an abnormal stress test result increases as you age. A study of athletes had the following findings: Of those ages 35 to 60, 5.1% had an abnormal stress test. Of those older than 60, 8.5% had an abnormal stress test. When you exercise for a treadmill stress test, a doctor will identify a target heart rate. Your age is a significant determining factor for this heart rate. Most doctors will challenge you to exercise at such a level you achieve 85% of your age-related maximum heart rate. Maximum heart rate is calculated by subtracting your age from 220. This means the following will be your expected stress test heart rate by age: Your age Maximum heart rate Target heart rate (85% max) 20 200 170 30 190 162 40 180 153 50 170 145 60 160 136 70 150 128 80 140 119 Factors a doctor is looking for while your heart rate goes up include: if you have chest pain while you exercise if you have EKG changes that indicate your heart isn't getting enough oxygen if your blood pressure goes up too much A doctor considers your test positive for ischemia (not enough blood flow to the heart) if you have at least a 1-millimeter horizontal or down-sloping ST-segment depression or elevation. Frequently asked questions on stress tests If you're feeling confused about the results of your stress test, you're not alone. The following are some commonly asked questions about stress tests. What do doctors look for in a stress test? Doctors are essentially looking for how well your heart is working overall in a stress test. They may also be checking to see if medications are working as expected or if you need further, more invasive testing (such as a coronary angiogram). Doctors are essentially looking for how well your heart is working overall in a stress test. They may also be checking to see if medications are working as expected or if you need further, more invasive testing (such as a coronary angiogram). Can anxiety affect a stress test? Anxiety can be a risk factor for cardiac disease. However, one study of men and women set to undergo stress testing didn't find anxiety was predictive of a positive result. The researchers did theorize that increased anxiety could activate the sympathetic nervous system, which can increase the heart rate (and make you feel more anxious). Ideally, you'd rather be calm and not anxious on the day of a stress test. However, researchers haven't proven that anxiety worsens stress test results. Anxiety can be a risk factor for cardiac disease. However, one study of men and women set to undergo stress testing didn't find anxiety was predictive of a positive result. The researchers did theorize that increased anxiety could activate the sympathetic nervous system, which can increase the heart rate (and make you feel more anxious). Ideally, you'd rather be calm and not anxious on the day of a stress test. However, researchers haven't proven that anxiety worsens stress test results. Can you pass a stress test and still have a blockage? Does a stress test show all heart problems? A stress test is a noninvasive way to help a doctor estimate how well your heart is working. The test results could indicate if you aren't experiencing the kind of blood flow to and from your heart that's expected. However, the stress test doesn't let a doctor identify where your blood flow is affected, which more invasive testing could. Talk with a doctor if you're concerned about your need for further testing. A stress test is a noninvasive way to help a doctor estimate how well your heart is working. The test results could indicate if you aren't experiencing the kind of blood flow to and from your heart that's expected. However, the stress test doesn't let a doctor identify where your blood flow is affected, which more invasive testing could. Talk with a doctor if you're concerned about your need for further testing. What should I eat right before a stress test? A doctor will direct you on how long you should wait to eat before your stress test. You'll usually refrain from eating or drinking anything besides water for 2 to 4 hours before your stress test. A doctor will direct you on how long you should wait to eat before your stress test. You'll usually refrain from eating or drinking anything besides water for 2 to 4 hours before your stress test. Should someone accompany you to a stress test? It's a good idea for someone to come with you to a stress test. This is because if you do have a positive result or are simply worn out from the test, having someone to drive you home can be beneficial and safer. It's a good idea for someone to come with you to a stress test. This is because if you do have a positive result or are simply worn out from the test, having someone to drive you home can be beneficial and safer. How many minutes is good on a stress test? A stress test involves walking on a treadmill until your heart rate reaches an established rate based on your age. If you're able to achieve this without signs of poor oxygen flow to your heart (ischemia), the stress test is over. One study of those older than age 75 found the average test times for people ages 76 to 80 were: 7 minutes and 22 seconds for men 6 minutes for women A stress test involves walking on a treadmill until your heart rate reaches an established rate based on your age. If you're able to achieve this without signs of poor oxygen flow to your heart (ischemia), the stress test is over. One study of those older than age 75 found the average test times for people ages 76 to 80 were: 7 minutes and 22 seconds for men 6 minutes for women How do transgender people fit in? At the time of publication, no studies could be found that spoke to stress test results among the transgender and gender nonconforming population. As a trans person, your expected results will depend on whether or not you've chosen to pursue hormone replacement therapy as well as a variety of other factors. Talk with a doctor if you're concerned about the results of your stress test. Learn more about how trans people fit into clinical trials.
Bloomberg
06-05-2025
- Business
- Bloomberg
ECB Stress Test Set to Hit Bank Capital Less After High Profits
The current stress test on Europe's biggest banks is on track to delivering a lesser hit to capital ratios than the previous one, partly reflecting the sector's strong profitability last year. The preliminary result is materializing after initial submissions to the European Central Bank by individual lenders in at least three countries show their capital ratios falling by less than at the same stage of the previous test, people familiar with the matter said. They asked not to be identified discussing the private matter.
