14. A test or review should be supported by a clear and detailed common methodology. Tests should …

A test or review should be supported by a clear and detailed common methodology. Tests should also be supported by one or more macro-economic scenarios . The methodology, without necessarily being a pass/fail test approach, should also include a range of hurdle rates or indicators that represent the quantitative references used to help assess the appropriate supervisory reaction function, including additional capital needs. When the test or review is concluded, institutions should be positioned according to the hurdle(s) rate(s) defined in the test or review methodology. This assessment may identify the need for institutions to fill a capital shortfall depending on different hurdle rates. When a capital shortfall is identified, competent authorities should request institutions to address this shortfall by private means. Institutions should address this shortfall through private capital increases or other measures to be taken by the institution within a specific timeframe , which should be defined in the exercise or pursuant to the criteria indicated in the exercise .

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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