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Azerbaijani Bank Introduce Stress-Testing for Financial Steadiness in Market

Business Materials 3 April 2008 17:55 (UTC +04:00)

Azerbaijan, Baku, 3 April / Trend / The Azerbaijan Texnikabank has launched applying one of the important risk management tools -stress-testing of market financial steadiness in market and bank's positions, Texnikabank reported.

Stress-testing, which is widely used in the international financial practice, is one of the most efficient analytical tools for risk management. Stress-testing is developed to assess potential loses in credit organizations in the case of possible recession and sharp fluctuation in economy.

Stress-testing is being done by large banks. Introduction of this practice leads a bank to a new level on risks managing and provide maximum financial security.

Texnikabank has started the introduction of stress-testing in order to react to any unexpected changes in the financial market and take adequate measures to decrease their influence on bank operations.

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