Securitisation and Regulation News

BCBS - Releases Review of Supervisory Authorities' Implementation of Stress Testing Principles

The BCBS also released a report that examines supervisory authorizes' implementation of stress testing principles first published by the Committee in 2009. The review focused primarily on progress in supervisory processes used to implement the principles and was not designed to provide a detailed country-by-country assessment or to assess the adequacy of banks' stress testing programmes.

The review found that stress testing has become a key component of the supervisory assessment process as well as a tool for contingency planning and communication. Many of the countries participating in this peer review have been working to implement and refine stress testing frameworks and methodologies at the same time as their economies and banking systems have been affected by a high degree of global economic and financial uncertainty. Although many supervisory authorities and banks had operational stress testing frameworks in place, existing guidance and rules had to be revised and new expectations put in place to broaden and deepen stress testing capabilities at both banks and supervisory authorities.

BCBS review