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ST-1.7.6

In order to arrive at a comprehensive assessment of an Islamic bank licensee's stress testing programme, the CBB will, where necessary, engage in discussion with the Board or senior management on the programme, particularly in respect of the following:

(a) Their views on major macroeconomic and financial market vulnerabilities and relevant threats specific to the bank's operation and business model; and
(b) Their justifications for various aspects of the stress testing programme and the methodology employed, such as the key assumptions driving the stress-testing results, the scope and severity of the firm-wide scenarios used, and how the stress-testing results are in practice being used.
July 2018