From Open Risk Manual


BCBS D427 is a document published by the Basel Committee on Banking Supervision on December 2017 in the Macroprudential category.


Supervisory and bank stress testing: range of practices.


This range of practices report describes and compares supervisory and bank stress testing practices and highlights areas of evolution. The report finds that, in recent years, both banks and authorities have made significant advances in stress testing methodologies and infrastructure. Stress testing is now a critical element of risk management for banks and a core tool for banking supervisors and macroprudential authorities.

The report draws primarily on the results of two surveys, completed respectively by Basel Committee member authorities and by banks (54 respondent banks from across 24 countries, including 20 global systemically important banks). The survey results are supplemented by case studies and other supervisory findings. A stress testing taxonomy is included with a common set of definitions for stress testing terms to aid the dialogue among banks and supervisors.

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