If we reflect back, NAMCABS has put emphasis on three categories of participants, i) policy makers at the corporate office ii) officers sitting in specialized MSME branches and iii) the trainers in the individual bank’s training establishments. However, CAB cannot be expected to train the entire banking community.
5 Stress tests involve macro considerations in identifying risks and setting out a plausible scenario while the results showing how banks are affected are a key input into setting individual bank capital requirements. Business model analysis also takes macro-financial factors into account when assessing risks faced by banks.