Bundesbank regularly conducts stress tests
Stress testing: The Bundesbank regularly conducts stress tests to evaluate financial system
stability and the solvency of individual institutions under various scenarios, including the
resilience of banks to macroeconomic shocks.
In order to enhance the rigor of stress testing,
the Bundesbank has recently made improvements to its framework, including the expansion
of the macroeconomic portfolio stress tests to cover 1,500 small and medium-sized banks (in
addition to the larger banks) and the development of a new stress test on interest rate risk.
The Bundesbank is also examining the possibility of including all universal banks in
Germany in the contagion stress tests versus only the 12 largest banks as is currently the case.