In fact, the Bank has recently participated in three stress testing exercises: first, as part of the IMF FSAP; second, as part of the wider bank stress tests across the European Union, led by the European Banking Authority (EBA); and third, the Single Supervisory Mechanism (SSM) stress tests, which followed the EBA methodology and ran concurrently with it.
The Bank also continues to review and challenge the banks’ own stress testing approaches and outcomes. I will focus on the first two exercises, as the outcomes are now in the public domain. The Bank’s analytical framework was used to support the IMF FSAP bank stress test.