As the financial services landscape witnesses an unprecedented change, banks can use machine learning ("ML") to expand their databases through alternative sources providing unstructured and semi-structured information, such as transaction data and digital footprint data. However, ML algorithms...

Supervisory stress tests assess the impact of an adverse macroeconomic scenario on the profitability and capitalisation of a large number of banks. The results of such stress test exercises have recently been disclosed to the public in an attempt to restore confidence and to curb bank opaqueness...