Definitions

For the purpose of these Guidelines, the following definitions apply:

• a) ‘tests’ means stress tests that are tools, coordinated at the national, Single Supervisory Mechanism (‘SSM’) or Union level, designed to assess the resilience of a group of institutions against hypothetical adverse market developments.
• b) ‘reviews’ means asset quality reviews consisting in assessments, coordinated at the national, SSM or Union level, of the quality of the accounting or prudential framework applied by a group of institutions, including an assessment of the risk management framework, loan classification, collateral valuation and loan origination and arrears management.
• c) ‘exercises’ means tests or reviews coordinated at Union level and conducted on a population of institutions over multiple jurisdictions. The assessment carried out in these exercises is based on the consistency, transparency and comparability of the outcomes across institutions.
• d) ‘competent authorities’ are authorities identified as competent authorities in Article 4(1)(a) and 4(1)(d) of the EBA Regulation.