Stress tests key for financial stability – Benchmarks participants
Most Benchmarks participants conduct stress tests more than once a year, but methods vary
Although central banks agree on the importance of stress tests, their frequency and the use of top-down versus bottom-up approaches varied among participants in our Financial Stability Benchmarks 2021.
In stress tests, regulators apply hypothetical scenarios to a bank or other financial institution to see if it has the resources to withstand a crisis.
The overwhelming majority of central banks participating in the 2021 Financial Stability Benchmarks said they conducted stress tests of banks
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