In short, we should recognize that what might appear to be a reasonable transparency measure in publishing the models will in fact result in less protection for the financial system. Thus, if the model were to be published, I would suggest that the minimum required capital levels would need to be materially increased in order to take account of the dynamics I just described.
21  20 Incentives toward greater asset correlations can be a concern even with a non-disclosed supervisory stress test model, since banks can approximate relevant risk loss functions based on their experience and observation of supervisory results. That is why the stress test and scenarios need to be regularly modified to take account of changing risks and correlations.