Regulatory Alerts2013-05-09
Reserve Bank of Malawi Stress Testing Framework Guidelines
The Reserve Bank of Malawi issues these stress testing framework guidelines to mandate rigorous, forward-looking stress tests for all licensed banks, integrating them directly into risk management and capital adequacy assessments. The framework requires boards to actively oversee stress testing programmes supported by robust data infrastructure, ensuring results inform strategic decisions, capital planning, and risk appetite setting. Applying the principle of proportionality, the guidelines accommodate varying bank sizes and complexities while ensuring all institutions assess their resilience to exceptional but plausible economic shocks.
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