Conventional bank licensees' stress tests must be both of a quantitative and qualitative nature, incorporating both market risk and liquidity aspects of market disturbances. Quantitative criteria must identify plausible stress scenarios to which conventional bank licensees could be exposed. Qualitative criteria must emphasise that two major goals of stress testing are to evaluate the capacity of the conventional bank licensee's capital to absorb potential large losses and to identify steps the conventional bank licensee can take to reduce its risk and conserve capital. This assessment is integral to setting and evaluating the conventional bank licensee's management strategy and the results of stress testing must be routinely communicated to senior management and, periodically, to the conventional bank licensee's board of directors.