The capital stress testing framework that we have developed is a dynamic way of looking at potential threats to capital in the context of the company’s ability to replace capital through its earnings power, the current level of capital, and plans for capital distribution. For traditional community banks, the primary threat to capital is the risk of loan losses.
Outmoded ATMs and EFTPOS machines  BIS Review 73/1999  4  have been replaced, computer programs have been rewritten or new software has been installed. With all this effort, the Australian financial system rightly enjoys a world-class reputation for its high level of Y2K preparedness. The Reserve Bank’s own computer systems are, of course, Year 2000 ready.