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6. Selection of Scenarios

No: 60697.BCS. 28747 Date(g): 23/11/2011 | Date(h): 27/12/1432 Status: In-Force

Banks should use a range of scenarios for stress testing. The level and severity of scenarios may be varied to identify potential risks and their interactions. The decision of scenarios selection should be taken carefully after taking into account all the relevant factors. In this regard, the following broad parameters are being laid down to ensure consistency in stress testing practices across the banking industry: