Various other techniques to assess the resilience of banks to simulated distressed conditions in the banking sector and in the larger financial sector through tools such as network analysis and modelling of the distress dependencies between banks are also being deployed for the purpose.
4  BIS central bankers’ speeches  Going forward, it would be critical that the stress testing results be incorporated in the business and capital assessment and planning exercise of banks. The overall acceptable levels of expected and unexpected loss willing to be incurred by banks should be a management decision driven based on rigorous and analytical assessment of available information.