Toronto Centre Podcasts

Toronto Centre Podcasts


Ep. 144: Supervision of Stress Testing by Financial Institutions

March 14, 2024

Stress testing should be a critical element of risk management for most financial institutions. It should alert boards and senior management to potential adverse outcomes related to a broad range of risks and vulnerabilities, identify potential losses, liquidity needs, and operational responses should adverse shocks occur. Supervisors should, in turn, have a strong interest in stress testing by financial institutions. 


This TC Note and accompanying podcast discusses the need for financial institutions to conduct stress testing, what types of stress tests and scenario analyses are used, possible adverse outcomes, key areas in stress testing supervision, and the possible usages of the results by financial institutions.


Speaker: 

Clive Briault, Chair, Banking Advisory Board, Toronto Centre

Host: 

Demet Çanakçı, Senior Program Director, Toronto Centre


Read the transcript hereRead their biographies here.



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