General Requirements
ST-1.2.1
Islamic bank licensees must establish a rigorous and forward looking (i.e. considers a minimum of 3-years projections) stress testing programme that is commensurate with the nature, size and complexity of its business operations, markets it operates in and its risk profile.July 2018ST-1.2.2
The coverage of the stress testing programme must be comprehensive and include on- and off-balance sheet exposures, commitments, guarantees and contingent liabilities.
Islamic bank licensees must factor in existing material risks and emerging risks relevant to its business and operating environment.July 2018ST-1.2.3
Stress testing must form an integral part of an
Islamic bank licensee's internal capital adequacy assessment and risk management process. Banks must be able to demonstrate the robustness of the stress testing methodologies used, the quality and comprehensiveness of the data underpinning the stress testing, involvement of relevant stakeholders across Board, senior management, business line, risk and finance control and oversight functions in the design and implementation of the stress test programme, and the use of stress test results by risk management.July 2018ST-1.2.4
Stress testing must also feed into the
Islamic bank licensee's strategic and business plan.July 2018
