It said stress testing allows banks to prepare for events with severe financial impact. Methodologies for stress testing range from simple sensitivity analysis to more complex tools, such as scenario analysis and reverse stress testing. The principles of accuracy and integrity, completeness, timeliness and adaptability are the same underpinnings of robust stress testing exercises, it added. With simplified and more flexible provisions in the guidelines, banks would be able to expand in unbanked and underserved areas. “Branch lite is a full branch, but banks have the flexibility in designing the branch.

Source: Manila Times December 21, 2017 16:30 UTC