Capital planning
402. When the quantitative outcomes of the stress tests referred to in Section 7.7.1 indicate that, under the given stress scenarios, an institution will not be able to meet the applicable capital requirements, competent authorities should require the institution to submit a credible capital plan that addresses the risk of not meeting its applicable capital requirements.
403. To determine the credibility of the capital plan, the competent authority should consider, as appropriate:
a. whether the capital plan covers the entire assumed stress testing time horizon;
b. whether the capital plan puts forward a set of credible mitigating and management actions, restricting dividend payments, etc.;
c. whether the institution is willing and able to take such actions in order to address the breaches of the applicable capital requirements in the system-wide stress tests;
d. whether those mitigating and management actions are subject to any legal or reputational constraints, for i
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