TY - BOOK ID - 84542980 TI - Into the great unknown : stress testing with weak data AU - Ong, Li Lian. AU - Maino, Rodolfo AU - Duma, Nombulelo. PY - 2010 SN - 1462391044 1455231665 1283566133 1455211648 9786613878588 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Finance: General KW - Industries: Financial Services KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Financial Institutions and Services: Government Policy and Regulation KW - Finance KW - Banking KW - Financial services law & regulation KW - Loans KW - Nonperforming loans KW - Stress testing KW - Loan classification KW - Financial risk management KW - Banks and banking KW - State supervision KW - International finance. KW - Financial risk management. UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542980 AB - Stress testing has become the risk management tool du jour in the wake of the global financial crisis. In countries where the information reported by financial institutions is considered to be of sufficiently good quality, and supervisory and regulatory standards are high, stress tests can be of significant value. In contrast, the proliferation of stress testing in underdeveloped financial systems with weak oversight regimes is fraught with uncertainties, as it is unclear what the results actually represent and how they could be usefully applied. In this paper, problems associated with stress tests using weak data are examined. We offer a potentially more useful alternative, the "breaking point" method, which also requires close coordination with on-site supervision and complemented by other supervisory tools and qualitative information. Excel spreadsheet templates of the stress tests presented in this paper are provided. ER -