Illustratively, if gold had been purchased at end-February 1996 and sold at end-February 2002 at the prevailing rates in the local bullion market, the average annualised return would work out to be negative.
Stress testing and capital planning requirements for large banking firms Important as higher capital requirements and a better quality of capital are to the safety and soundness of financial institutions, conventional capital requirements are by their nature somewhat backward-looking. First, they reflect loss expectations based on past experience.