2019-03-08 | BSD/DIR/GEN/LAB/12/004

Guideline on Stress Testing for the Nigerian Banks

The Central Bank of Nigeria (CBN) has issued guidelines for stress testing in Nigerian banks, emphasizing the integration of stress testing into banks' internal capital adequacy assessment processes. The guidelines cover high-level principles, including board and senior management involvement, risk governance, and potential management actions arising from internal capital assessments. Banks are expected to perform stress testing quarterly and ensure it is embedded in their risk management frameworks. The CBN will evaluate stress test results to determine if a capital add-on is required and to set a more risk-sensitive minimum capital requirement for each bank.

Nigeria

Central Bank of Nigeria

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