A new KPMG assessment of stress testing practices at 19 systemically important banks (SIBs) found significant progress has been made by the banks in developing stress testing frameworks. As a result, banks stronger capital positions leads to greater capability to absorb all but the most sever shocks while continuing to meet the minimum hurdles applied by regulators. However, even with the improvements to the technical application of stress testing there is still work to be done to enhance the operations delivery and embed stress testing further across the banks. Below are the key findings and associated recommendations that we believe will enhance and improve the efficiency of the future state of stress testing at banks.
For more information on how KPMG can help, please contact your local KPMG office.