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ST-1.6.3

In response to the stress tests results, conventional bank licensees must formulate realistic management actions considering:

(a) Type of actions and specific circumstances, including external conditions, under which the management actions are unlikely to be feasible. This includes a consideration of factors listed in Paragraph ST-1.6.6;
(b) Whether the actions would be consistent with the risk appetite or tolerance level set by the Board;
(c) Whether the bank has adequate financial resources and operational capabilities to undertake such management actions; and
(d) Constraints by supervisory or regulatory requirements, or market restrictions.
July 2018