AFME/BBA/ISDA respond to CEBS guidelines on stress testing
05 April 2010
They believe the dialogue within a firm presented by the guidelines will support strategic planning and capital management. Their response also reflects the strong view that stress testing should be seen as an enabler for further regulatory discussions along a “comply or explain” basis.
AFME, the BBA and ISDA responded to the CEBS draft revised guidelines on Technical Aspects of Stress Testing under the Supervisory Review Process.
The response supports many elements of the proposed guidance and finds the principles “highly useful.” As the draft guidance provides a framework for promoting dialogue within a firm, the response believes the dialogue will support strategic planning and capital management.
The response also reflects the strong view that stress testing should be seen as an enabler for further regulatory discussions along a “comply or explain” basis.
© CEBS - Committee of European Banking Supervisors
