We continue to take a multidisciplinary approach, drawing on a wide range of staff expertise. We create hypothetical macroeconomic scenarios that incorporate an assumed sharp deterioration in economic and financial conditions. Supervisors estimate each bank’s expected losses and revenues and use these estimates to project post-stress capital levels and ratios under the hypothetical scenarios. The estimated capital ratios are then compared with regulatory benchmarks.
We use common scenarios for all firms; for the firms with the  BIS central bankers’ speeches  1  largest trading activities, we add a market-shock scenario that incorporates market turbulence of severity similar to that of the latter half of 2008. While the basic approach has remained consistent, much else has changed.