Corporate Vulnerability and Bank Stability : Evidence from Jordan
This paper uses data on publicly listed companies in Jordan to evaluate corporate vulnerability and perform corporate stress testing. The exercise finds that both earnings and interest rate shocks have significant impact on corporate vulnerability....
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Language: | English |
Published: |
2012
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Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101213131439 http://hdl.handle.net/10986/3984 |
Summary: | This paper uses data on publicly listed
companies in Jordan to evaluate corporate vulnerability and
perform corporate stress testing. The exercise finds that
both earnings and interest rate shocks have significant
impact on corporate vulnerability. Because different banks
have different sector exposures, and different sectors
exhibit different vulnerability at different times, the
stress tests that include corporate exposure will provide a
more precise evaluation of bank soundness. |
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