Solvency macro-stress test

The CNB uses solvency macro-stress tests to assess the resilience of the banking sector as a whole to credit and market risks in particular. The Baseline and Adverse Scenarios of economic developments are prepared by the CNB and the testing horizon is three/five years. The tests also include sensitivity analyses, which the CNB uses to respond to the need to assess the impact of additional – often only temporary – systemic risks. All banks established in the Czech Republic are tested. The test is conducted twice a year and its results are published in the Financial Stability Report.