Regulatory Alerts2015-01-15
Guidelines for Stress Testing at Liberian Banks
The Central Bank of Liberia issued these guidelines to mandate commercial banks and the regulator itself to conduct regular bottom-up and top-down stress testing, respectively. The document assigns ultimate oversight to boards of directors and daily implementation responsibilities to senior management, while requiring banks to identify key risk factors, document assumptions, and submit results within ten days of each exercise. It further equips the regulator with macro-prudential tools, such as capital buffers and exposure limits, to address identified vulnerabilities and ensure sector-wide financial stability.
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