100 investment funds in Romania, to take part in stress test

Romania’s Financial Supervisory Authority (ASF) will carry out a stress test in which more than 100 investment funds in Romania will take part. The test, whose methodology has been approved by ASF, will reveal possible vulnerabilities about the funds both at individual and sectorial level. Some 73 mutual funds and 29 closed-end funds will participate at the test. During the test, the investment funds will be subject to various external shocks, such as a drop of 35% in BET, the main index of the Bucharest Stock Exchange or a decrease of 20% in the STOXX 600 index, which follows the 600 most representative companies listed on European bourses. The test will also increase the interest rate by 2 percentage points for the Romanian currency lei and by 1.5pp for currency-denominated bonds. The test has a bottom-up structure. It will be based on data and estimates received from private entities, which are later validated, aggregated, and analyzed by ASF. editor@romania-insider.com