Foreign practices of an integrated stress-testing framework based on Basel III requirements
Abstract
This article examines foreign practices in the development and implementation of integrated stress-testing frameworks based on Basel III requirements. The study focuses on how advanced banking systems incorporate stress testing into risk management, capital adequacy assessment, and liquidity supervision. Particular attention is paid to the integration of credit, market, and liquidity risks within a unified stress-testing architecture, as well as the role of macroeconomic scenarios in assessing banks’ resilience under adverse conditions. The analysis highlights methodological approaches applied in international practice, including scenario design, model integration, and governance arrangements. Based on the review of foreign experience, the article identifies key strengths and limitations of existing stress-testing frameworks and outlines practical implications for improving risk management and supervisory practices. The findings contribute to a better understanding of how Basel III–based integrated stress testing enhances financial stability and supports informed decision-making in the banking sector.