AI-Driven Stress Testing of Commercial Bank Balance Sheets

Traditional stress testing methods, while essential, often struggle to capture the complex, non-linear dependencies and second-round effects that characterize modern financial crises. This advanced course focuses on integrating **Artificial Intelligence (AI)** and **Machine Learning (ML)** techniques to enhance the rigor, granularity, and speed of commercial bank balance sheet stress testing. Participants will learn how to use advanced modeling (e.g., deep learning, network analysis) to generate more realistic and severe macroeconomic scenarios, model bank-specific losses with greater precision, and, crucially, capture interconnectedness and behavioral changes often missed by conventional models. The program emphasizes creating forward-looking, high-fidelity stress tests that inform capital requirements, resolution planning, and macro-prudential policy.