64.A bank should ensure that it has sufficient capital to meet the Pillar 1 requirements and the results (where a deficiency has been indicated) of the credit risk stress test performed. The Central Bank will review how the stress test has been carried out.

65.Central bank will use the reference model to challenge the stress test results Reference model is based on +/- 200 basis point shock based on NII and EVE. Central Bank assumes a higher basis point for stress testing which is described in the accompanying guidance document.

66.The results of the stress test will thus contribute directly to the expectation that a bank will operate above the Pillar 1 minimum regulatory capital ratios. The outcome of the Central Bank stress tests will be used as a benchmark. If there is an impact of more than 200bps, the Central Bank will require setting higher minimum capital requirements so that capital resources could cover the Pillar 1 requirements plus the result of a recalculated stress test.