Primer on the Forward-Looking Analysis of Risk Events (FLARE) Model: A Top-Down Stress Test Model
Abstract: This technical note describes the Forward-Looking Analysis of Risk Events (FLARE) model, which is a top-down model that helps assess how well the banking system is positioned to weather exogenous macroeconomic shocks. FLARE estimates banking system capital under varying macroeconomic scenarios, time horizons, and other systemic shocks.
File(s): File format is application/pdf https://www.federalreserve.gov/econres/feds/files/2020015pap.pdf
Part of Series: Finance and Economics Discussion Series
Publication Date: 2020-02-13
Note: On February 14, 2020, this paper was updated to include additional acknowledgements.