SBP issues revised suite of Guidelines on Stress Testing of the Banking Sector

News Image

MG News | September 02, 2020 at 01:25 PM GMT+05:00

0:00

September 2, 2020: The State Bank of Pakistan has today released a revised suite of Guidelines on Stress Testing, which replaces the earlier guidelines issued in 2012. Stress testing is a key tool used globally by banks for risk management and capital planning. Accordingly, the revised guidelines will further strengthen the risk management capacity of the banks, Development Finance Institutions (DFIs) and Micro-Finance Banks (MFBs), in line with evolving international best practices and changing local economic and financial dynamics.

The scope of revised guidelines has been broadened to incorporate guidance on Macro-stress Testing (MST), besides the Sensitivity Analysis (SA) with an enhanced number of shock scenarios. In terms of coverage, besides banks/DFIs, the Islamic Banks/Islamic Banking Branches (IBs/IBBs) and MFBs will also perform SA exercise. Further, the Domestic Systemically Important Banks (D-SIBs) will be required to conduct MST annually, which will facilitate in improving the supervision and monitoring of these large sized banks. Moreover, the data submission requirements have been rationalized and financial institutions will now be required to furnish data on a minimal number of variables.

The guidelines also envisage supervisory engagement with banks based on SBP’s in-house assessment to ensure that appropriate risk mitigation measures are taken for strengthening the resilience of the individual institutions and the banking system.

Press Release

Related News

Name Price/Vol %Chg/NChg
KSE100 138,665.50
299.28M
1.68%
2285.53
ALLSHR 85,699.50
778.48M
1.24%
1051.15
KSE30 42,353.14
103.20M
1.94%
806.91
KMI30 195,182.04
107.99M
1.81%
3462.27
KMIALLSHR 56,389.15
437.73M
1.01%
561.42
BKTi 38,422.98
17.31M
1.57%
595.37
OGTi 27,718.26
13.25M
0.17%
47.58
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,215.00 119,915.00
117,720.00
-1415.00
-1.18%
BRENT CRUDE 68.90 69.01
68.27
0.38
0.55%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
0.95
0.99%
ROTTERDAM COAL MONTHLY 104.50 0.00
0.00
-0.65
-0.62%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.05 67.20
66.29
0.67
1.01%
SUGAR #11 WORLD 16.81 16.84
16.54
0.25
1.51%

Chart of the Day


Latest News
July 17, 2025 at 05:11 PM GMT+05:00

Gold price in Pakistan falls Rs900 per tola


July 17, 2025 at 04:53 PM GMT+05:00

PSX issues consultation paper on free-float requirements


July 17, 2025 at 04:30 PM GMT+05:00

KTML Board proposes share sub-division to Rs2 face value


July 17, 2025 at 04:06 PM GMT+05:00

PSX Closing Bell: A Sky Full of Gains



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg