Eisert, TimBarranca, Remy2026-03-092026-03-092025-01-202024-12-17http://hdl.handle.net/10362/201107This report analyzes the findings of the article “Testing Macroprudential Stress Tests: The Risk of Regulatory Risk Weights” by Acharya, Engle, and Pierret (2014), which concludes that regulatory stress tests often underestimate capital shortfalls compared to V-Lab, especially during times of economic stress, giving an overly optimistic view of banks’ stability. To evaluate this claim, the same comparative analysis from the article for the 2011 EBA stress tests and the V-Lab stress test was replicated and extended to 2016. The final results indeed corroborate the article's conclusion that risk-based regulatory capital shortfalls are underestimated, with asset-based capital shortfalls yielding more favorable outcomes.engV-lab stress testEBA stress testRisk-weighted-based capital requirementssAsset-based capital requirementsCapital shortfallmaster thesis204131430