406. An important aspect that competent authorities should consider when assessing the …

An important aspect that competent authorities should consider when assessing the institution’s stress testing framework is the modelling of the impact of the hypothetical stress scenario(s) on the institution’s cash flows and on its counterbalancing capacity and survival horizon, and whether the modelling reflects the different impacts that economic stress may have on both an institution’s assets and its in- and outflows.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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