Supervisory stress test

The CNB uses supervisory stress tests to assess the resilience of individual banks. Since 2018, the methodology prepared by the CNB has been based on the rules of the European Banking Authority for EU-wide stress testing tailored to the specificities of the Czech banking system. The Baseline and Adverse Scenarios of economic developments are prepared by the CNB and the testing horizon is three years. In addition to traditional credit risk assessment, the testing now covers market and operational risks, interest and non-interest income, expenditure and capital. The tests are conducted once every two years in cooperation with selected banks accounting for about 91% of the banking sector’s assets. The CNB uses the results for individual banks in the regular supervisory review and evaluation process (SREP).