Stress testing systemic risk: macroprudential policy in an era of persistent uncertainty

As geopolitical fragmentation, higher-for-longer interest rates and structural shifts reshape the global financial landscape, policy-makers are placing greater emphasis on system-wide and macroprudential stress testing to identify systemic vulnerabilities and strengthen financial resilience. Beyond its supervisory role, stress testing has become an increasingly important tool for understanding how shocks may propagate across institutions, markets and borders.

Katrin Assenmacher, head of the stress test modelling at the European Central Bank, joins OMFIF to discuss how the ECB is adapting macroprudential stress testing to meet the challenges of a rapidly evolving risk landscape. The conversation explores how emerging vulnerabilities – including non-bank financial intermediation, market fragmentation and cyber risks operational resilience – are influencing financial stability, shaping macroprudential policy and informing investment decisions.