AlQabas reports that the CBK has engaged Booz and Company to assist it with stress tests for the banking sector.
The article states that the CBK has taken the stress tests prepared by the banks at face value with no follow-up or consultations. You might find it suprising but the banks apparently did quite well on their self administered test. An "A" for all in the middle (or medium) case. And only a few "remarks" on a bank or two for the worst or severe test. ! مبروك
Booz and Company will review the banks' financials and the information they provided to the CBK and then design neutral (perhaps a better translation is "unbiased") half yearly and annual tests. It sounds as though this may be an ongoing program). Booz's "neutral" (unbiased) test will be a decisive factor in determining whether a bank needs to augment its capital or reserves.
Posts
