The Reserve Bank has released a new animated video explaining banking sector stress tests.
Stress testing is a tool to assess how banks might cope with a severe economic downturn.
The two-minute animated video explains how stress tests work and why the Reserve Bank uses them to monitor and respond to risks in the banking sector.
The video is part of a series of animated videos prepared by the Reserve Bank. These include ‘The OCR and how it works’, ‘What is the economy?’, ‘Compound Interest’ and ‘What is money?’.
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Naomi Mitchell
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