1.A bank with material country and transfer risks exposure must include in its stress testing program appropriate scenarios for country and transfer risk. This does not necessarily require sophisticated modelling tools, but does require the bank to evaluate the potential impact of various scenarios affecting countries, regions or types of foreign exposures, as appropriate considering the bank’s business. Scenarios may include, but are not limited to, macro-economic shocks such as interest rate and exchange rate movements, GDP contraction and the introduction of exchange or capital controls.