Manama (UNA-OIC) – The General Council for Islamic Banks and Financial Institutions (CIBAFI), the global umbrella of Islamic financial institutions, on Thursday concluded the first online Technical Workshop of 2021, organized under the theme “Stress Testing for Islamic Financial Institutions (IFIs)”.
The two-day workshop aims to enhance participants’ understanding of stress testing and guide them on appropriate mechanisms for practical application, as it is one of the important practices for testing the ability of financial institutions to deal with crises. The process involves stages of planning and data analysis to determine the potential of financial institutions in dealing with risks and crises.
Over the course of two days, the participants discussed stress-testing methodologies and their suitability in helping financial institutions cope with potential financial shocks that could be triggered by climate-related factors.
They also discussed the practical reality of banking stress tests: (the obstacles that limit the effectiveness of stress tests, international experiences of banking stress tests and their effectiveness, and recent developments of stress tests), in addition to a practical application to form an integrated stress testing.