IFPRU 4.9 Stress tests
Stress tests used in assessment of capital adequacy
To be satisfied that the credit risk stress test undertaken by a firm under article 177(2) of the UK CRR1 is meaningful and considers the effects of severe, but plausible, recession scenarios, the FCA would expect the stress test to be based on an economic cycle that is consistent with IFPRU 2.2.73G(1)(b) (see article 177(2) of the UK CRR1)