The CNB has been conducting stress tests of households once a year since 2011. The aim is to test households’ ability to repay their loans in the event of extremely adverse economic developments. These stress tests therefore focus mainly on the risk arising from financially distressed households, whose potential debt repayment difficulties transform into credit risk of the financial sector. The main data sources for calculating financial distress are microdata for individual households from the CZSO’s Household Budget Statistics and Statistics on Income and Living Conditions. The test results are published in the Financial Stability Report.

Current stress testing methodology

Stress test results