An International Monetary Fund paper, published in April, extends the methodology for bank stress tests by applying greater risk-sensitivity to the framework.

Christian Schmieder, Claus Puhr and Maher Hasan, the paper's authors, note that methods used to carry out stress tests since the onset of the financial crisis tend to be too simple to identify arising risks. The authors argue that for stress tests to effectively fulfill their role, assessments on the impact of adverse shocks on solvency