Stress testing represents a risk management tool used to evaluate the potential impact on a bank (or a group of entities) of a specific event and / or movement in a set of financial or macro variables. Stress testing has to be regarded as a complementary tool to major risk management instruments such as value-at-risk analysis. IMF and Basel committee on banking supervision suggested conducting stress testing.
By conducting Stress Testing, Regulators hope to achieve,
Able to understand mechanism through which stress develops.
Able to implement measures when the effects of stress events evolves into a vicious circle involving the real economy, financial markets & banking sector.
Banks hope to achieve with stress testing,
Identify where the risk concentrations are?
Understand impact on bank if biggest customers default.
Impact on bank if historical worst-case scenarios recur.
Impact on bank if it hit by similar severe credit loss event that affected competitors in the past.
The broad & overall objective of this report is to know about the stress testing on Premier Bank Ltd.This report aims to achieve the following specific objective:
Ø To identify the key aspects of stress testing of the company.
Ø To analyze the shocks or risk factors of stress testing.
Ø To conduct the scenario analysis of each shocks.
Ø To find out the overall stress testing of the company for three consecutive years..
To make the report more meaningful and presentable, we mainly use the secondary sources of data which is available.
Ø Annual reports of the company for last three years.
Ø Different articles & materials base on stress testing.
Ø Use statistical tool for shocks or risk factors analysis.
Ø Assemble information from related websites.
DOWNLOAD FULL
By conducting Stress Testing, Regulators hope to achieve,
Able to understand mechanism through which stress develops.
Able to implement measures when the effects of stress events evolves into a vicious circle involving the real economy, financial markets & banking sector.
Banks hope to achieve with stress testing,
Identify where the risk concentrations are?
Understand impact on bank if biggest customers default.
Impact on bank if historical worst-case scenarios recur.
Impact on bank if it hit by similar severe credit loss event that affected competitors in the past.
The broad & overall objective of this report is to know about the stress testing on Premier Bank Ltd.This report aims to achieve the following specific objective:
Ø To identify the key aspects of stress testing of the company.
Ø To analyze the shocks or risk factors of stress testing.
Ø To conduct the scenario analysis of each shocks.
Ø To find out the overall stress testing of the company for three consecutive years..
To make the report more meaningful and presentable, we mainly use the secondary sources of data which is available.
Ø Annual reports of the company for last three years.
Ø Different articles & materials base on stress testing.
Ø Use statistical tool for shocks or risk factors analysis.
Ø Assemble information from related websites.
DOWNLOAD FULL
No comments:
Post a Comment