Regulatory Alerts2014-09-01 | Guidelines on Stress TestingGuidelines on Stress Testing of Licensed Commercial Banks and Licensed Specialised Banks
The Bank Supervision Department mandates licensed commercial and specialised banks to establish a comprehensive Stress Testing Framework (STF) that integrates forward-looking risk assessments into core governance and capital planning. Banks must identify material exposures, apply plausible sensitivity and scenario tests across multiple adversity levels, and maintain robust data infrastructure alongside independent validation and timely remedial actions. Active board and senior management oversight, periodic reviews, clear reporting protocols, and targeted disclosures ensure the framework remains actionable and proportionate to each institution’s risk profile and operational complexity.
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