The test included all the domestic systemically important banks. A formal approach to risk identification and scenario design was followed, and the banks were exposed to four adverse scenarios, including a protracted recession and a period of excessive financial market volatility.
The results of the exercise confirmed that South African banks were adequately capitalised to withstand significant credit losses throughout the stress scenarios, even before taking into account any mitigating action by their management teams. After the Brexit referendum, financial markets in emerging-market economies were exposed to significant levels of volatility.