4/6  BIS central bankers' speeches  The best way is to keep running stress tests on different aspects of the financial system. The auto industry has tested air bags in cars for a long time for how they perform in different types of collisions. “Crash-testing” for banks only became standard practice relatively recently.
More needs to be done to extend this type of analysis to newer players in the system, such as asset managers and other non-bank financial institutions. This is quite challenging because their activity often crosses borders, and the ecosystem that needs to be modelled is very complex.