382. Competent authorities should determine by means of stress testing the adequacy of the institution’s own funds (quantity and composition) in stressed conditions and whether supervisory measures, including P2G, capital planning and other measures as set out in Title 10, are necessary to address potential inadequacies.
383. To assess capital adequacy in stressed conditions, competent authorities should consider:
a. the use of the qualitative outcomes (e.g. deficiencies identified in risk management and control) of institutions’ stress tests and supervisory stress testing; and
b. the use of the quantitative outcomes of ICAAP stress tests, if the ICAAP is deemed reliable in accordance with paragraph 358, and of supervisory stress tests (i.e. outcomes in terms of changes in own funds ratios), pursuant to Article 100 of Directive 2013/36/EU as specified in Title 12 of these guidelines, and including, for example:
i. prescribing specific ‘anchor’ scenarios/assumptions to be implem
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