Households sector

The CNB has been conducting stress tests of households regularly since 2011 and presents their results once a year in the Financial Stability Report. The aim of the tests is to assess the resilience of indebted households in a hypothetical scenario simulating adverse economic developments. These stress tests therefore focus mainly on the risk arising from overindebted households, whose potential debt repayment difficulties transform into financial sector credit risk. Analysis of the risks associated with the repayment of mortgage loans is of key importance from the systemic risk perspective. Its importance grows as the share of mortgage loans in banks’ portfolios increases. The primary data source for household sector stress testing is the Survey of new loans secured by residential property, which the CNB has been conducting across credit institutions operating in the Czech Republic twice a year since mid-2015.

Current stress testing methodology

Stress test results