154. Institutions should apply the following three types of stress scenarios: an idiosyncratic …

Institutions should apply the following three types of stress scenarios: an idiosyncratic scenario, a market-wide scenario and a combination of the two. As idiosyncratic stress scenario should assume institution-specific events (e.g. a rating downgrade, the default of the largest funding counterparty, a loss of market access, a loss of currency convertibility, the default of the counterparty providing the largest inflows), whereas a market-wide stress scenario should assume an impact on a group of institutions or the financial sector as a whole (e.g. a deterioration in funding market conditions or the macroeconomic environment, or rating downgrades of countries in which the institution operates).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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