RISK MANAGEMENT IN THE BANKING SECTOR - STRESS RESISTANCE TESTS
RISK MANAGEMENT IN THE BANKING SECTOR - STRESS RESISTANCE TESTS

Summary/Abstract: A modern, turbulent and dynamic global financial environment requires the banking sector to adopt a risk management policy as a starting point that should more closely define the recognition and control of the total exposure of the banking system to different types of risks. The author gives an overview of the role and significance of the stress tests that provide a quantitative assessment of the vulnerability of the banking portfolio and which are most often associated with unexpected but real economic events and shocks. The results of stress tests carried out in the United States as well as in the European Union mem¬ber states in the context of a crisis with a focus on the framework for testing stress resistance in Basel II and III were also presented.

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