Stress testing

The CNB uses stress testing as a tool for assessing the resilience of selected sectors in the Czech Republic. The CNB applies both a top-down aggregate/macro approach and a bottom-up individual/micro approach to stress testing. Macro-stress tests assess the resilience of the banking sector, the pension management companies sector, the investment fund sector, the household sector and the non-financial corporations sector. Micro-stress tests assess the resilience of individual banks and insurance companies. In addition, the CNB performs stress tests of public finances of countries to which domestic credit institutions have systemically important sovereign exposures. The scenarios for the individual stress tests are prepared by the CNB, usually as a Baseline Scenario and an Adverse Scenario. The stress testing methodology is regularly revised and published on this website. The stress tests are conducted at regular frequency, yearly for the sectors tested and half-yearly for banks.

Stress testing methodology and results