Business Situation

Stress testing is required to test the resilience of banks to different plausible shocks. Stress tests are analyses conducted for hypothetical macroeconomic and financial scenarios to determine whether a bank has enough economic capital or provisions to stand economic crisis. Federal or International authorities like BDDK, IFRS and EBA requires all banks of a size to conduct stress tests and report results regularly.

Our Approach & Solution

Considering the authorities’ guidelines and minimum requirements we develop multiple econometric models and compare forecasting performances to select the best model. And we design the internal and external reports for stress testing results.

Technologies

A proper econometric model development tool and a report design tool are main technological requirement of a well – designed and automatic Stress Testing framework.