*  *  Introduction  First of all, my grateful thanks to the Indian Merchants’ Chamber and the Institute of Chartered Accountants of India for inviting me to be the Chief Guest at this year’s International Finance and Banking Conference. The theme of this conference, “Banking – Crisis and Beyond” is relevant and timely.
First, measures of capital based on stress tests are both more forward looking and more robust to “tail risk” – that is, to extremely adverse developments of the sort most likely to foster broad-based financial instability.