The industry-wide stress test (IWST) assumes two macroeconomic scenarios: a central one and an adverse one.
In the wake of Liberation Day, and a report dated April 8 by the Bank of America on stress-testing the banks, Oversea-Chinese Banking Corporation’s (OCBC) chairman Andrew Lee assured shareholders at an AGM on April 17 that the banking group does an annual stress test. “We stress for a one in 10 event, which is when the world spins into a big, big crisis. The additional layering is to cater for the volatility of a one in 10 event.”
To take a step back, the Monetary Authority of Singapore conducts stress tests on the banks and announces the type of tests that are carried out in a Financial Stability Review (FSR). The most recent was published in November 2024.
