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Multi-year solvency stress test for banks and insurers

The Bank’s multi-year solvency stress test exercise examines the potential impact of prolonged financial and macroeconomic strains on the resilience of individual banks and insurers, and the overall financial system. Similar to previous exercises, the latest stress test contains three scenarios, one baseline and two distinct adverse scenarios, over a four-year horizon (2020-2023).

At the end of the four-year stress horizon, the banking system’s capital ratios remained above regulatory minima. Similarly, the insurance sector is able to maintain capital adequacy ratios (CAR) above the regulatory minima.

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