During a six-month tenure as a Houblon-Norman Fellow at the Bank of England, Dr Stoja carried out research on the co-dynamics of extreme events, working closely with researchers and policymakers on several areas of financial risk including banking crises.

One of his research projects with colleagues from the Stress Testing Strategy Division of the Bank of England highlights the importance of disclosing ‘stress test scenarios’ – a topic overlooked in the literature until now.

Following recommendations by the Bank’s Financial Policy Committee in 2013, the UK banking system has been developing the so-called ‘stress test scenario’ – a framework used by regulators to assess the resilience of UK banks and building societies in deteriorating global economic conditions.

Dr Stoja’s research, published as a Bank Underground article, argues that disclosure of the stress test scenario can be as important as – if not more important than – the disclosure of the results of applying such tests. This information can provide vital information to investors when examining the health of systemically important banks, and allows them to anticipate the results of stress tests.