Stress tests should not only place emphasis on solvency, but they should explore the impact of the assumed shock on bank liquidity, the implications of applying the bail-in tool, the funds needed to meet any demand on deposit guarantee funds, etc. We should focus on harmonizing processes, while models should be enriched with constrained judgement as is standard practice in macroeconomic forecasting. 4.
During the next 18 months you will be working closely with experts from the ECB as well as with experts from national central banks of the Eurosystem. I am very pleased that we have found leading experts who will be able to support you in the areas of your choice. What will we be working on?