Bank of Russia publishes macroprudential stress-testing concept for consultation with market

The Bank of Russia has submitted a public consultative report aimed at formulating conceptual approaches to macroprudential stress-testing at the Bank of Russia. These are to be in line with best practice of other central banks, to take into account the particularities of Russian financial markets and certain types of market participants and also to allow for the further use of stress-testing results as part of the Bank of Russia's macroprudential policy.

Macroprudential stress-testing is designed to assess the financial sector’s resilience under the stress scenario of macroeconomic development. As conceptual approaches set forth in the report comprise participants’ behavioural responses and rely on practical management of business processes in stress situations, the Bank of Russia will welcome market participants’ and other stakeholders’ comments and proposals seeking to improve the concept. Additionally, the Bank of Russia offers points for discussion with regard to the most contentious aspects of the report.

The concept is to be used as a methodological basis for the implementation of stress-testing at the Bank of Russia.