Book contents
- Central Banking and Sustainability
- Central Banking and Sustainability
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Introduction
- Part I Sustainability as a New Objective of Central Banks
- Part II Understanding and Managing Sustainability Risks
- 7 Sustainable Central Bank Balance Sheets and Operations
- 8 Climate-Related Risks, Systemic Risks, and Macroprudential Regulation
- 9 Central Bank Supervisory Role
- 10 Operationalising the Climate Change Action Plan of the European Central Bank
- 11 Designing Stress Tests for Sustainability Risks
- 12 Central Bank Digital Currencies and Financial Inclusion
- Part III In Search of Guidance
- Index
- References
11 - Designing Stress Tests for Sustainability Risks
from Part II - Understanding and Managing Sustainability Risks
Published online by Cambridge University Press: 06 February 2026
Book contents
- Central Banking and Sustainability
- Central Banking and Sustainability
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Introduction
- Part I Sustainability as a New Objective of Central Banks
- Part II Understanding and Managing Sustainability Risks
- 7 Sustainable Central Bank Balance Sheets and Operations
- 8 Climate-Related Risks, Systemic Risks, and Macroprudential Regulation
- 9 Central Bank Supervisory Role
- 10 Operationalising the Climate Change Action Plan of the European Central Bank
- 11 Designing Stress Tests for Sustainability Risks
- 12 Central Bank Digital Currencies and Financial Inclusion
- Part III In Search of Guidance
- Index
- References
Summary
More and more supervisors embark on the climate stress testing journey, which is still, even though progress has been made over the last years, new ground for supervisors and financial institutions alike. Good practices and practical guidelines are a crucial element for the industry to further progress and align on climate stress testing practices. This chapter provides an overview of key design considerations for climate stress testing and their differences from traditional stress testing, whereby the focus is on conducting such exercises for supervisory (i.e., microprudential) and institution-specific purposes.
Keywords
Information
- Type
- Chapter
- Information
- Central Banking and Sustainability , pp. 233 - 256Publisher: Cambridge University PressPrint publication year: 2026
References
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