A recent report from the Basel Committee sets out a range of observed supervisory and bank stress testing practices. It aims to describe and compare these practices and highlight areas of evolution.
The report primarily draws on the results of two surveys completed during 2016:
(i) a survey completed by Basel Committee member authorities (banking supervisors and central banks), which had participation of 31 authorities from 23 countries; and
(ii) a survey completed by 54 respondent banks from across 24 countries, including 20 global systemically important banks (G-SIBs).
Case studies, and other supervisory findings, are also included to supplement the results of the surveys by providing more detail
on specific aspects of stress testing.
It’s divided into two main sections:
(i) a section on supervisory stress testing frameworks (Section 2); and
(ii) a section on bank stress testing frameworks (Section 3).