Bank Stress Testing

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Definition

Bank Stress Testing denotes Stress Testing activities performed internally by financial institutions and/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