OMN CB guidelines draw on Basel's stress testing principles, and stress testing is integral to banks' risk management to alert supervisors of adverse shocks or events.
These guidelines are applicable to all licensed banks under OMN CB and testing should be proportionate to size, complexity, and risk profile of the bank undertaking it.
Banks are required to conduct solvency stress tests, using the format and instructions as advised by OMN CB by Apr. 30 every year, beginning on Apr. 30, 2025, forwards.
Liquidity stress tests should be conducted quarterly, and results sent by 15th of the next month following each calendar quarter, beginning from next year, in 2025.
Effectiveness
Banks must fully comply with the guidelines by the end of Dec. 2024.
