They also provide practical information about what might be needed to withstand and recover from these events.
The Bank of Canada works with other organizations, such as OSFI and the International Monetary Fund, to conduct regular stress-testing exercises of financial institutions and to improve our modelling techniques.25 The unfinished business here is that models used for stress testing capture mainly firstround effects, with limited ability to identify spillovers that we know can end up being even more important.