11. Reverse stress testing should be considered as a starting point for developing scenarios that …

Reverse stress testing should be considered as a starting point for developing scenarios that should be only ‘near-default’; i.e. they would lead to an institution’s or a group’s business model becoming non-viable unless the recovery actions were successfully implemented.

Range of scenarios of financial distress

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/