The DIFC Authority has hosted a workshop on ‘Financial Vulnerability Indicators and Bank Stress Tests’, as part of its ‘Economics Workshops’ series.

The event discussed how banks can use ‘vulnerability indicators’ to assess their capacity to withstand challenging economic conditions. The event also explored how ‘stress tests’ can help banks in evaluating their finances in both adverse and normal scenarios.

Vulnerability indicators and bank stress tests have a range of applications – from detection of early warning signs to credit rating.

“The workshop explores how banks, financial institutions and regulators can incorporate financial vulnerability indicators into their decision making and risk management strategy for countering the effects of the economic and financial crises,” said Dr Nasser Al Saidi, chief economist, DIFC Authority.-TradeArabia News Service