New stress testing framework strengthens global banking system resilience.
The article discusses how the IMF has improved its methods for testing the financial health of banks after the global financial crisis. They have created a framework for stress testing banks' solvency, which helps identify risks and vulnerabilities. This framework has been used in 18 countries, including the 25 most important financial systems and other G-20 countries. The paper provides guidance for developing similar stress testing frameworks and offers templates for analyzing the results of these tests.