Asset managers should be candidates for stress tests, top Bank of Italy official says

21 June 2019 8:48pm
Regulators world-wide should consider subjecting asset managers to stress tests, a top Bank of Italy official said, adding to the chorus of bank authorities flagging nonbank risks.

Potential threats posed by asset managers “are too new, too complex and too little understood for any complacency,” the Italian central bank’s deputy governor, Luigi Signorini, said in a speech* this week. “The work on stress-testing tools for nonbanks is still in its infancy.”

The asset-management sector has resisted previous calls for stress tests.