In making decisions about our stress tests this year, I have been guided by three principles: First, we want to make sure that our supervisory and regulatory actions do not exacerbate the fallout from what was the most extreme deterioration in economic conditions on record.
Second, we want to jealously guard the credibility of our stress tests, which restored confidence in banks during the GFC and have helped maintain that confidence since. Third, we want to establish the precedent that our response to a crisis would remain as deliberate, data driven, and bank specific as could be done prudently.