stress test

Claire Jones

When IMF officials travelled to Iceland in the summer of 2008, they pronounced the health of its financial sector to be good.

The banking system’s reported financial indicators are above minimum regulatory requirements and stress tests suggest that the system is resilient.

IMF, Iceland: Financial Stability Assessment – update, 19 August 2008

Within two months, the island’s three biggest lenders had collapsed, leaving its economy in tatters. Read more >>