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State Street Bank & Trust

Article 98 refers to reverse stress test for ICAAP and ILAAP purposes to not be interlinked with recovery planning. As de facto RST creates the conditions to trigger recovery options, should we rather expect to link the two exercises to ensure consistency and continuity in assessing the Institution's capital adequacy under severe stress conditions? Following this path, could even the RST developed for ICAAP/ILAAP be used as starting point for Recovery Plans, assuming all required conditions are met, without duplicating the simulation of near to default situation across the two exercises?
Alessandro Ricci
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