Objective: The Course was designed to enable the participants to apply sound practices of stress testing for an individual bank and the banking system from a banking supervisory point of view. In achieving this, the participants learnt to: (i) identify the areas of application for stress testing in the financial system; (ii) explain how bank rating models can be used in stress testing exercises; (iii) discuss the recovery determinants of distressed banks; (iv) apply bank stability indicators; (v) discuss key considerations in implementing stress testing tools; (vi) explain the integrated micro-macro approach and portfolio stress tests; and (iv) describe the processes in developing macroeconomic stress tests.

Resource Persons: Mr. Thomas Kick, Financial Economist, Department of Banking and Financial Supervision, Deutsche Bundesbank, was the lead facilitator. To enrich the learning experience of the participants, experienced speakers were invited from the Bank for International Settlements (BIS), Bangko Sentral ng Pilipinas (BSP), Hong Kong Monetary Authority (HKMA), Bank of Thailand (BOT)and Bank Negara Malaysia (BNM). They were namely, Dr. Haibin Zhu, BIS; Mr. Jermy Y. Pernio, BSP; Mr. Eric Wong, HKMA; Dr. Mathinee Subhaswadikul (BOT); Dr. Zarina Zainal Abidin (BNM) and Mr. Mohamed Rezwan Abdullah Ismail (BNM).

Target Group: The 39 participants representing 17 institutions from 15 countries, who attended the Course were staff involved in banking supervision, macro-surveillance and financial stability analysis.