Book Launch: Banking's Final Exam: Stress Testing and Bank-Capital Reform


May 23, 2017, 12:15 PM to 1:30 PM EDT
PIIE Webcast, Washington, DC

Morris Goldstein (PIIE), Tom Hoenig (Federal Deposit Insurance Corporation) and Giovanni Dell'Ariccia (International Monetary Fund)

Event Summary

The Peterson Institute for International Economics released its new book, Banking's Final Exam: Stress Testing and Bank-Capital Reform, by Morris Goldstein, PIIE nonresident senior fellow, on May 23, 2017. Following Goldstein's presentation, Tom Hoenig, vice chair at the Federal Deposit Insurance Corporation (FDIC), and Giovanni Dell'Ariccia, deputy director of the research department of the International Monetary Fund (IMF), provided commentary on the critical issues for financial stability raised by Goldstein's book.

In this book, Goldstein examines the bank stress tests conducted during 2009–16 by US and EU bank supervisors, with lessons for the future design and conduct of these tests. He concludes that the tests administered on both sides of the Atlantic suffer from some fundamental weaknesses, leading to a false sense of reassurance about the safety and soundness of the banking system.

Goldstein has been affiliated with the Institute since 1994. He previously held several senior staff positions at the IMF, including as deputy director of its research department from 1987 to 1994. He has written extensively on international economic policy and on international capital markets.

Hoenig was confirmed by the Senate as vice chairman of FDIC in November 2012. He joined the FDIC in April 2012, as a member of the FDIC Board of Directors for a six-year term. He also serves as president of the International Association of Deposit Insurers, elected to the position in October 2015. Prior to serving on the FDIC board, Mr. Hoenig was the president of the Federal Reserve Bank of Kansas City.

Dell'Ariccia supervises the activities of the macro-financial division at the IMF. He worked previously in the IMF’s Asia and Pacific Department. Dell'Ariccia received his PhD in economics from MIT.