Monetary Policy Uncertainty, U. S Bank Stability and the Rise of AI-Enabled Stress Testing: A Review

Key Points

• Monetary policy uncertainty affects bank stability, leading to heightened risk levels.
• AI-enabled stress testing offers more accurate predictions, improving financial system resilience.
• The review synthesizes literature on stress testing and monetary policies across various contexts and frameworks.
• Findings suggest a growing need for advanced tools to navigate financial uncertainties effectively.