180. In their stress testing programmes, institutions should take into account foreign exchange …

In their stress testing programmes, institutions should take into account foreign exchange lending risk affecting credit facilities in the asset side of their balance sheet and its multiple sources of risk, taking into account that the debtor’s inability to repay its debt may originate from:

• a) risks related to the debtor’s internal source of income;
• b) risks related to the economic situation in the country in which the currency is denominated; and
• c) foreign exchange risk.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/