Bottom line: the banks might do well to call in the leading credit analysts and find out what information would be of greatest use to them in identifying and quantifying tail risks. And then provide it. For, if there is no information, the credit analyst tends to assume the worst.
They think: “if the actual situation were good, would the bank not have been at pains to disclose it?” Since it is not disclosed, it must be bad. At present, regulators have been gathering more and more information of this type, and the size and quality of the information set available to the regulators has been improving by leaps and bounds.