Regulatory Alerts2009-06-02
Added · Updated
Principles for sound stress testing practices and supervision
The Basel Committee on Banking Supervision issued the Principles for sound stress testing practices and supervision to establish a global framework for effective risk management. These principles require banks to integrate stress testing into their strategic planning and capital allocation processes while ensuring robust governance and independent validation. Supervisors are mandated to evaluate the adequacy of these practices and intervene when institutions fail to meet the established standards for reliability and comprehensiveness.
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