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ST-1.7.6

In order to arrive at a comprehensive assessment of a conventional 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