585. The supervisory stress testing programme set out by the competent authorities should ensure at least the following:
a. When designing methodologies and assumptions for use in supervisory stress tests, competent authorities should decide on the design and features of the exercise that are most suitable for its intended purpose, i.e. that are linked to the supervisory (or other) objectives set by the competent authority.
b. When conducting supervisory stress tests on a wider sample of institutions, competent authorities may consider adopting the design of supervisory stress tests for different categories of institutions as set out in Section 2.4, especially if the exercise is top-down.
c. Competent authorities should consider the appropriate timelines for conducting supervisory stress tests, including the time horizon of the scenarios and the period over which the management actions proposed by institutions in the stress test exercise are analysed. The timelines for the exercise sho
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