China Banking Regulatory Commission: Commercial banks should establish comprehensive and rigorous stress testing programs.

China Banking Regulatory Commission has issued the "Commercial Bank Market Risk Management Measures". The measures state that commercial banks should establish comprehensive and rigorous stress testing procedures, including qualitative and quantitative analysis, regularly simulate and estimate potential losses from sudden small probability events such as drastic changes in market prices, sharp reductions in market liquidity, or potential losses caused by other risk contagion, in order to evaluate the bank's loss tolerance capacity in extremely adverse situations.