As far as the second enhancement is concerned, existing non-bank stress test approaches need to better account for interactions between agents. We know from experience that the impact of a stress test event hitting a financial institution is often amplified via its interactions with the rest of the financial system.
Therefore, failing to account for such interactions may risk overestimating the resilience of single institutions and the system as a whole. Some extensions to the traditional stress testing have already been operationalised, at least for the banking system. I would like to emphasise the inclusion of strategic behaviour (e.g.