Cover -- CONTENTS -- GLOSSARY -- INTRODUCTION -- BANKING-SOLVENCY STRESS TESTS -- A. Summary of Both Solvency Stress Tests -- B. Bottom-Up Solvency Stress Tests -- C. Top-Down Solvency Stress Tests -- D. Reconciliation of Both Solvency Stress Tests -- BANKING-LIQUIDITY STRESS TESTS -- SUMMARY AND POLICY IMPLICATIONS-BANKING -- INSURANCE-SOLVENCY STRESS TESTS -- SUMMARY AND POLICY IMPLICATIONS-INSURANCE -- REFERENCES -- BOXES -- 1. Review of Aggregation Approach -- 2. Key Elements of Different Valuation Approaches Applied in the Stress Test -- 3. Contagion Effects in Bancassurance -- FIGURES -- 1. Banking Sector Developments -- 2. Liquidity and Short-term Funding -- 3. Bank Funding -- 4. Insurance Financial Soundness Indicators (FSIs) -- 5. Macroeconomic Assumptions under Different Stress Test Scenarios -- 6. Solvency Stress Tests-Risk Drivers -- 7. Evolution of Aggregate Capital Ratios in Solvency Stress Tests -- 8. Solvency Stress Test Results-Total Capital Hurdle Rates -- 9. Solvency Stress Test Results-Tier 1 Capital Hurdle Rate -- 10. Solvency Stress Test Results-CET1 Capital Hurdle Rate -- 11. Banks' Liquidity Ratios and Stress Test Results -- 12. Insurance Stress Test Results -- TABLES -- 1. Stress Test Matrix (Stem) for the Banking Sector: Solvency and Liquidity Risks -- 2. Composition of the System and Banks Included in the Stress Tests -- 3. Financial Soundness Indicators for Banks Included in the Solvency Stress Test -- 4. Macroeconomic Scenarios for Solvency Stress Test -- 5. Overview of the Basel II and III Minimum Capital Requirements -- 6. Liquidity Stress Test Parameters (Basel III Standard Measures) -- 7. Liquidity Stress Test Parameters (NBB Liquidity Ratio) -- 8. Insurance Sector-Stress Test Specification -- APPENDICES -- I. Proposed Timeline for Completion of Solvency -- II. Key BU Solvency Stress Test Parameters.

III. Overview of Stress Test Scenarios (in percent) -- IV. Interpolated Interest Rate Term Structure and Swap Rate Curve -- V. Possible Satellite Model Specification -- VI. Minimum Funding Cost: Empirical Estimation of Nonlinear Change -- VII. Sovereign Haircuts for Selected Countries -- VIII. Estimation Methodology for Sovereign Risk Valuation Haircuts -- IX. Pay-out Ratio, Hurdle Rates, and Changes in Risk-Weighted Assets -- X. Suggested Output Format for Reporting by Firms to NBB -- ANNEX -- I. Guidelines for the Bottom-Up Solvency Stress.