Macro-Stress Testing (MST)
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- Macro-Stress Testing (MST)
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Bibliographic details
- Session: ST 26.25
- Location: Singapore, Singapore
- Dates: November 23-27, 2026 (1 week)
- Delivery method: In-person Training
- Primary language: English
- Status: Deadline passed
Course overview and logistics
- Session No.: ST 26.25
- Location: Singapore, Singapore
- Date: November 23-27, 2026 (1 week) New dates
- Delivery Method: In-person Training
- Primary Language: English
- Presented by the Monetary and Capital Markets Department (MCM)
Target audience and qualifications
- Target audience:
- Mid-level to senior officials working on financial supervision or financial stability in central banks or other supervisory authorities.
- Qualifications:
- Participants are expected to have experience with stress testing, Basel regulations, and financial stability analysis.
Course description — scope and modules
- Coverage:
- Recent developments in stress testing for banks, insurance companies and mutual funds.
- Regional specificities, with an example: the offering for the Middle East and Northern Africa (MENA) region includes analysis of Islamic finance.
- New and emerging topics in stress testing, including:
- Feedback loops between real and financial sectors
- Asset fire-sales
- Climate
- Systemwide liquidity
- Fintech related risks
- Tools and integration:
- Opportunity to learn and apply new tools used or created by MCM for stress testing and systemic risk analysis.
- Some tools are integral to the Financial Sector Assessment Program (FSAP) and technical assistance missions.
- Pedagogy and activities:
- Hands-on modules exposing participants to the entire stress testing cycle:
- Entering data and estimating macro-financial models
- Designing scenarios and selecting assumptions
- Running tests and integrating feedback loops between financial and real sectors
- Communicating results and incorporating them into policy decision making (for example, informing the calibration of capital and liquidity buffers)
- Focus on the scenario design, solvency and liquidity elements and their interactions.
- Course concludes with a roundtable discussion for exchanging knowledge and country experiences.
- Guest speakers from industry are invited in many cases to discuss specific topics.
Course objectives (learning outcomes)
Upon completion of this course, participants should be able to:
- Identify main sources of financial stability risk.
- Summarize the principles for developing macro-financial stress scenarios.
- Link changes in macroeconomic and financial variables with financial results and measure their relative impact.
- Assess the resilience of individual entities and the financial system to solvency and liquidity stress.
- Develop and incorporate models that are capturing second round effects or interactions between different risk types.