188. Furthermore, by means of stress testing, institutions should evaluate the reliability of their …

Furthermore, by means of stress testing, institutions should evaluate the reliability of their capital plans under stress conditions to ensure that they meet the capital requirements applicable to them. Any evaluation of capital plan reliability under stressed conditions should take into consideration scenario severity and occurrence probability. Institutions should also test the reliability of their liquidity plans to ensure that they can meet liabilities as they fall due under stress conditions. Institutions should assess the level of transferability of capital and liquidity resources in stressed conditions and consider any possible impediments, including legal, organisational and operational impediments. Institutions should, where appropriate, recognise that certain elements of capital requirements, as well as the liquidity buffers, may be used in stressed conditions (e.g. elements of the combined buffer requirements as specified in Chapter 4 of Title VII of Directive 2013/36/EU).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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