139. Institutions should design severe but plausible stress events. Assumptions may differ from …

Institutions should design severe but plausible stress events. Assumptions may differ from assumptions used in credit and market risk stress scenarios. When an institution expands its business in the local or in the international markets through mergers and acquisitions, the design of new products or a new business line, the severe but plausible stress test scenarios should be based on expert judgement to overcome the possible lack of historical information.

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/