Bank Stress Testing

The financial crisis demonstrates how rapidly market conditions can subject banks to significant strain or even their collapse, hence the need for identifying, testing, and reducing vulnerabilities at banks and other financial institutions. For this reason, stress testing is occupying a prominent place in the risk management areas, macro-prudential regulation and financial supervision of banks and financial institutions.

The course aims to provide a solid knowledge of stress testing methodologies using severe scenarios and a set of benchmark assumptions as an important tool in macro-prudential frameworks, risk-management practices, and financial supervision at banks and financial institutions.