credit risk, interest rate and exchange rate risks, liquidity risk and contagion risk, and are guided in the design of stress …

systems around the world. These failures were most evident in the area of liquidity risk, where now-obvious vulnerabilities … data from a now-defunct bank in Iceland, where liquidity shocks were immense, to demonstrate how a combination of stress … assumptions and shocks, could reveal key areas of risk to inform contingency planning. The liquidity stress test templates used in …