While individual business-line stress tests had been done by bank supervisors, a comprehensive stress test of all the largest banks at the same time using the same scenarios was new. While conducting the tests simultaneously for all 19 banks was challenging and resource intensive, the exercise provided supervisors the ability to make comparisons across institutions using the same underlying assumptions, and allowed the same core supervisory staff to be involved in assessments across institutions. Where banks were outliers relative to peers, supervisors could ask for more detailed information to determine if these differences were justified, based on analysis of comparable data. In addition, the stress tests were forward looking, so that the evolution of performance and results over the next two years  4  BIS central bankers’ speeches  could be compared across institutions. This provided a rigorous, data-driven assessment. It also highlighted where institutions needed to do additional work relative to peers to improve their risk management practices. The banks were evaluated on whether, over the two-year period under stress assumptions, they were likely to be able to maintain a Tier 1 capital ratio of 6 percent and a Tier 1 common capital ratio of 4 percent. It is worth noting that for most banks it was the Tier 1 common capital ratio that was most binding, and was the capital definition that best reflected the ability to absorb losses.
We have planned an open and rolling application process for these roles and intend to name additional counterparties in the weeks ahead. Complementing this effort, the New York Fed also announced a parallel process last week whereby firms may also apply to become agency CMBS dealers to support the Desk's purchases of agency CMBS. In closing, let me finish where I started. In this time of pain and hardship, we have choices to make in how we respond, and the opportunity before us is to create generational opportunities for a broad and inclusive set of businesses to help advance an equitable recovery. I look forward to partnering with you on this work for years to come. 1 1 Rajashri Chakrabarti and William Nober, “Distribution of COVID-19 Incidence by Geography, Race, and  Income,” Federal Reserve Bank of New York Liberty Street Economics, June 15, 2020. 2 2 Rajashri Chakrabarti, William Nober, and Maxim Pinkovskiy, “ Are Financially Distressed Areas More Affected  by COVID-19?,” Federal Reserve Bank of New York Liberty Street Economics, August 17, 2020. 3 3 Daleep Singh, “The Fed’s Emergency Facilities: Usage, Impact, and Early Lessons,” remarks at Hudson  Valley Pattern for Progress, July 8, 2020. 4 4 Jerome H. Powell, “Coronavirus and CARES Act,” testimony before the Committee on Financial Services, U.S.  House of Representatives, Washington, D.C., June 30, 2020. 4/4  BIS central bankers' speeches