We responded to that abrupt change in environment by adapting stress testing to conduct a sensitivity analysis, an application of the stress testing models used to inform the Board of Governors about risks to bank solvency during those rapidly changing conditions.
The sensitivity analysis we conducted was possible because we routinely collect standardized data from banks on their exposures and have developed our own loss and income models at the Fed. Thus, we were able to conduct this analysis purely internally, without putting additional burdens on banks during an already-difficult time.