This presentation will highlight how stress testing fits within the Bank of Canada’s risk assessment framework. Given the Bank’s focus on systemic risk, the priority from a stress test modelling perspective is to capture the various sources of risk affecting banks (e.g., solvency risk, liquidity risk) as well as the externalities that may result from banks’ interactions under stress (e.g., fire-sales and network effects). The presentation will focus on the key features of our bank stress testing model, MFRAF, as well as the areas for further development, including the challenges associated with stress test modeling in an environment where banks face several regulatory constraints (capital, leverage and liquidity).