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ISSN 1518-3548 CGC 00.038.166/0001-05 Working Paper Series Bras LIA n. 241 May 2011 p. 1-50 Working Paper Series Edited by Research Department (Deep) E-mail: working paper BCB.gov.BR Editor: Benjamin
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Macro stress testing is an analysis technique used to assess the potential impact of adverse economic conditions on financial institutions.
Financial institutions such as banks and other regulated entities are required to file macro stress testing.
Macro stress testing is typically filled out by conducting an assessment of a financial institution's balance sheet, risk exposures, and capital adequacy under various stress scenarios.
The purpose of macro stress testing is to ensure that financial institutions are resilient and can withstand severe economic shocks, thereby safeguarding the stability of the financial system.
Macro stress testing requires the reporting of financial institution's risk exposures, capital levels, and the potential impact of stress scenarios on their profitability and solvency.
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