IBM and Promontory on stress testing – A valuable exercise making its way in the world of regtech

The past 10 years have seen stress testing take centre stage as a methodology for regulators to assess the soundness of their respective institutions. All major international regulators have formulas and scenarios they apply in such drills, and banks are obliged to put a lot of energy and resources into ensuring they can hold up to various test conditions. But what has made stress testing even more interesting is the larger context of regulatory technology – or ‘regtech’ – in which it now finds itself. IBM discusses the challenges and opportunities involved.

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