Bank Stress Testing

From Open Risk Manual

Definition

Bank Stress Testing denotes Stress Testing activities performed internally by financial institutions or in coordination and as mandated by Financial Regulators

Types of Stress Tests

  • Solvency Stress Test, focusing on assessing the solvency of a firm (its ability to continue operations as a Going Concern)
  • Liquidity Stress Test, focusing on the liquidity of a firm (its ability to meet cash payments without disruption)


See Also


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