Stress testing of risks as a tool for crisis management operations of banks.

Abstract

The article deals with stress testing of the Ukrainian banking sector as a tool for crisis management activities of banking institutions. Particular attention is paid to the methodological aspects of the formation of stress tests. Analyzed international experience in approaches to building systems stress testing and highlights the main points that, according to the authors, may be useful to the supervisory authority in Ukraine. The authors detail the issues and trends that are observed in the regulatory activities of the domestic banking system; assess the feasibility and practice stress testing of foreign central banks in the activities of the National Bank of Ukraine. On the basis of analysis of current trends the authors convincingly justify the need for the creation and implementation of best practices of effective stress testing of risk, namely the implementation of it on an ongoing basis, development of an integrated methodology of the stress tests, informing the public on the results of the stress test domestic banks.