The objective would be to ensure that all CCPs apply reliable and comparably robust stress testing frameworks. Conclusion Despite the work that still needs to be done to ensure the full effectiveness of CCP recovery and resolution, it is important to understand that CCPs are truly beneficial for the preservation of financial stability.
In economics, some of the uncertainty regarding the future comes from the fact that when preparing the forecast, we don’t always exactly know the current state of the economy or, as I will soon show, even the state of the economy in the past.