Regulatory Alerts2023-07-07
Guidelines No. 4230/2023 on Stress Testing for Banks
The National Bank of Rwanda mandates a comprehensive stress testing framework for commercial banks, requiring them to assess credit, market, liquidity, concentration, and operational risks against defined minor, moderate, and major shock scenarios. Institutions must evaluate key performance metrics including expected credit losses, non-performing loans, liquidity coverage ratios, and counterparty defaults to determine capital adequacy under adverse economic conditions. The guidelines standardize risk assessment methodologies and provide concrete examples to ensure consistent, forward-looking vulnerability identification across the banking sector.
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