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 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. Since 2018, the test has been conducted once a year and its results are published in the Financial Stability Report.