The Banking Agency of the Federation of Bosnia and Herzegovina has published a methodology for supervisory stress testing (testing horizon 2025-2027), alongside the forms banks must use to conduct the 2025 supervisory stress test and instructions for completing those forms. Results from the exercise are intended to support preliminary capital recommendations (Pillar 2 guidance) and will be considered in capital adequacy assessments within the Supervisory Review and Evaluation Process (SREP). The methodology and templates are designed to cover the relevant risks to which banks are exposed. Macroeconomic assumptions for the baseline and adverse scenarios were developed jointly by the Central Bank of Bosnia and Herzegovina, the Banking Agency of Republika Srpska and the Banking Agency of the Federation of Bosnia and Herzegovina. Banks are expected to use the published forms when carrying out the 2025 supervisory stress test, with outcomes feeding into Pillar 2 guidance and the SREP assessment of capital adequacy.
Banking Agency of the Federation of Bosnia and Herzegovina 2025-03-18
Banking Agency of the Federation of Bosnia and Herzegovina publishes 2025-2027 supervisory stress testing methodology and templates for banks
The Banking Agency of the Federation of Bosnia and Herzegovina released a supervisory stress testing methodology for 2025-2027, including forms and instructions for banks. The results will inform preliminary capital recommendations and be used in the Supervisory Review and Evaluation Process (SREP) for capital adequacy. Macroeconomic assumptions for scenarios were developed with the Central Bank of Bosnia and Herzegovina and the Banking Agency of Republika Srpska.