31. The outputs of stress tests (quantitative and qualitative) should be used as inputs to the …

The outputs of stress tests (quantitative and qualitative) should be used as inputs to the process of establishing an institution’s risk appetite and limits. Furthermore, they should act as a planning tool to determine the effectiveness of new and existing business strategies and their impact on the use of capital. To enable that, the essential outputs from a stress testing exercise should be implied losses, capital and liquidity requirements, as well as available capital and liquidity.

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/