PBOC Starts Stress Tests on Banks to Curb Bond Risks, Paper Says

Bloomberg News

PBOC Starts Stress Tests on Banks to Curb Bond Risks, Paper Says
Financial InstitutionsGovernment BondsMarket Volatility
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(Bloomberg) -- China has initiated stress tests with financial institutions on their bond investments, to make sure they can handle any market volatility...

-- China has initiated stress tests with financial institutions on their bond investments, to make sure they can handle any market volatility should a record-breaking rally reverse, according to state-run media.With Housing Costs High, Democrats Hone YIMBY Message

By doing the tests, the authorities want to see if banks can handle drastic market swings in hypothetical and extreme conditions with their current holdings of assets, the paper said. In the case of the bond market, officials may want to see how banks can react if yields surge by 10, 20 or even 50 basis points in a sudden move, it added.

The central bank did not seek to nor will it seek to ban legitimate investments or trading in its government bonds, but it sees risks in a buying spree of the securities, Bloomberg earlier reported, citing people familiar with the PBOC’s thinking. DENVER — Zach Wilson and Jarrett Stidham both made strong closing cases for surviving roster cuts after losing out to rookie Bo Nix in the Denver Broncos' latest quarterback competition.Nvidia earnings are the next test after Fed chief Powell said it's time for rate cuts, fueling the stock market rally.Lions finish preseason hungry to begin regular season in primetime

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