Ninety-four percent of capital markets executives who participated in a recent Sybase survey in London said they were not particularly confident that stresstesting had addressed the important risks to the banking system.
Digital Storm technicians stress-test and benchmark the system via industry standard testing software coupled with a proprietary testing process that detects components which can be prone to future failure.
When testing for credit stress, it seems they used a uniform system where losses on Greek debt were 23.1%, 12.3% loss on Spanish debt and a 4.7% loss on German debt.
Unfortunately, without rigorous testing and accurate results with the aim of truly finding out how much stress the banking system can handle and adapting accordingly, these tests may not soothe in the short-term, but more likely leave markets extremely fragile when the next real-life test is had.
Sybase NA Survey 04-17-12-BDespite their afore registered lack of confidence in the system, almost half of the North American respondents (46 percent) indicated that stresstesting should take place at least once every six months.