An integrated macroprudential stress test of bank liquidity and solvency

We propose a new measure of systemic financial distress that incorporates idiosyncratic and risks in the system network. Using this measure, we develop an integrated stress test bank liquidity solvency based on dynamics within banking apply framework to US identify vulnerability individual banks as well resilience whole economic shock. The helps us monitor interdependencies between banks. proposed testing is useful for practical macroprudential monitoring informative policy making.