Macroprudential Stress Tests and Policies : Searching for Robust and Implementable Frameworks

Macroprudential stress testing (MaPST) is becoming firmly embedded in the post-crisispolicy-frameworks of financial-sectors around the world. MaPSTs can offer quantitative,forward-looking assessments of the resilience of financial systems as a whole, to particularlyadverse shocks. Therefore, they are well suited to support the surveillance of macrofinancialvulnerabilities and to inform the use of macroprudential policy-instruments. This reportsummarizes the findings of a joint-research effort by MCM and the Systemic-Risk-Centre,which aimed at (i) presenting state-of-the-art approaches on MaPST, including modeling andimplementation-challenges; (ii) providing a roadmap for future-research, and; (iii) discussingthe potential uses of MaPST to support policy