## Introduction to Applied Stress Testing

_IMF Working Papers, March 1, 2007_

## Source details

**Canonical URL:** [Introduction to Applied Stress Testing](https://www.imf.org/en/publications/wp/issues/2016/12/31/introduction-to-applied-stress-testing-20222)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/introduction-to-applied-stress-testing-20222/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/introduction-to-applied-stress-testing-20222/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/introduction-to-applied-stress-testing-20222/bundle-manifest.json)

## Bibliographic details
- Authors: Martin Cihak
- Published: March 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451866230.001

---

### Summary / Purpose
- Stress testing is presented as a useful and increasingly popular, yet sometimes misunderstood, method of analyzing the resilience of financial systems to adverse events.
- The paper aims to demystify stress tests and illustrate their strengths and weaknesses.

### Methodology and Practical Exercise
- Uses an Excel-based exercise with institution-by-institution data to guide practical implementation.
- Readers are walked through stress testing for multiple risk types and guided in the design of stress testing scenarios.

### Risks and Analytical Coverage
- Stress testing exercises and discussion cover:
  - credit risk
  - interest rate risk
  - exchange rate risk
  - liquidity risk
  - contagion risk

### Links to Other Analytical Tools
- Describes links between stress testing and:
  - financial soundness indicators
  - supervisory early warning systems

### Surveys and Institutional Practices
- Includes surveys of stress testing practices in central banks and the IMF.

### Publication and Metadata (preserved exactly)
- By Martin Cihak
- March 1, 2007
- Pages: 74
- Volume: 2007
- Issue: 059
- Series: Working Paper No. 2007/059
- DOI: https://doi.org/10.5089/9781451866230.001
- Stock No: WPIEA2007059
- ISBN: 9781451866230
- ISSN: 1018-5941

### Key Descriptive Keywords and Subjects
- Subject: Banking, Credit risk, Market risk, Nonperforming loans, Stress testing
- Keywords: economic value, financial system, interest rate, WP

*Source: Introduction to Applied Stress Testing — IMF Working Paper by Martin Cihak (March 1, 2007).*

---

## Content in this bundle

- **Introduction to Applied Stress Testing; Martin Čihák; IMF Working Paper 07/59; March 1, 2007**
  - [Introduction to Applied Stress Testing; Martin Čihák; IMF Working Paper 07/59; March 1, 2007 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp0759.pdf.md){rel="alternate" type="text/markdown"}
  - [Introduction to Applied Stress Testing; Martin Čihák; IMF Working Paper 07/59; March 1, 2007 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp0759.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/introduction-to-applied-stress-testing-20222_