Bank Stress Testing
From Open Risk Manual
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
- How to Conduct a Stress Testing Program
- A list of Bank Stress Testing exercises is maintained in this Wikipedia entry
