Public finance sector
The CNB has been reviewing and evaluating the sovereign exposure concentration risks in the balance sheets of Czech credit institutions on the basis of its internal methodology since 2015. Through its Financial Stability Reports it informs the market every year about which sovereign exposures it has identified as systemically important and whether it will require domestic credit institutions to meet an additional capital requirement to cover the risk of concentration of such exposures at the three-year horizon.
Current stress testing methodology:
- Internal CNB methodology for the review and evaluation of sovereign exposure concentration risk (pdf, 409 kB)