Basel Committee issues stress-test guidelines

The Basel Committee on Banking Supervision has produced a raft of measures for the sound governance, design and implementation of stress tests.

The committee said that the Principles for sound stress testing practices and supervision "address the weaknesses in banks' stress tests that were highlighted by the recent financial crisis."

Nout Wellink, the chairman of the committee and the president of the Netherlands Bank, said that stress testing should be fully integrated in banks' governance f

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