01778cas a2200241 a 4500 AALejournalIMF004687 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866230 1018-5941 BD-DhAAL BD-DhAAL Cihak, Martin. Introduction to Applied Stress Testing / Martin Cihak. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (74 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Stress testing is a useful and increasingly popular, yet sometimes misunderstood, method of analyzing the resilience of financial systems to adverse events. This paper aims to help demystify stress tests, and illustrate their strengths and weaknesses. Using an Excel-based exercise with institution-by-institution data, readers are walked through stress testing for credit risk, interest rate and exchange rate risks, liquidity risk and contagion risk, and are guided in the design of stress testing scenarios. The paper also describes the links between stress testing and other analytical tools, such as financial soundness indicators and supervisory early warning systems. Furthermore, it includes surveys of stress testing practices in central banks and the IMF. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/059 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/059/001.2007.issue-059-en.xml IMF e-Library