Czech National Bank

The Czech National Bank is the central bank of the Czech Republic and the supervisor of the Czech financial market. The objective of the CNB is to maintain price and financial stability. The CNB sets monetary policy, issues banknotes and coins and manages the circulation of currency, the payment system and settlements between banks. It also performs supervision of the banking sector, the capital market, the insurance industry, pension funds, credit unions, electronic money institutions and non-bank consumer credit providers. The CNB uses stress testing as a tool for assessing the resilience of financial institutions registered in the Czech Republic and of the financial system as a whole. The scenarios for the individual stress tests are prepared by the CNB. The CNB uses supervisory stress tests to assess the resilience of individual banks and insurance companies. The tests are conducted once a year in cooperation with selected banks and insurance companies. The CNB uses the results for supervisory purposes and to evaluate banks and insurance companies. The CNB also conducts macro-stress tests, which assess the resilience of the banking sector and the pension management companies sector as a whole. In addition, the CNB performs stress tests of the public finances of countries to which domestic credit institutions have systemically important sovereign exposures and of households that have credit from domestic credit institutions.