Call grows for bank stress tests in the Gulf - The National Newspaper

Gulf governments have been urged to follow the EU and introduce stress tests of regional banks’ capacity to withstand financial shocks.

But to ensure the reliability of the results, disclosure and transparency within the public and private sectors would have to improve first, analysts say.

“Stress tests would be welcomed but critical to their success would be having correct systemic inputs to make sure the assumptions going into stress-testing were sensible,” said Raj Madha, a senior banking analyst at Rasmala Investment Bank.