This exercise played a key role in publicly identifying capital deficiencies at the largest firms and bolstering market confidence by requiring companies to address these deficiencies. 4  BIS central bankers’ speeches  covering a range of adverse economic and financial conditions.
Such tests show the potential harm faced by individual banks in stressful conditions and thus the potential that such problems could affect the stability of the financial system. The goal is to see that large institutions have enough capital not just to survive in these conditions, but also to continue serving their customers.