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Most people hew the battlements of life from compromise, erecting their impregnable keeps from judicious submissions, fabricating their philosophical drawbridges from emotional retractions and scalding marauders in the boiling oil of sour grapes.
A bank stress test is an analysis conducted under hypothetical unfavorable economic scenarios, such as a deep recession or financial market crisis, designed to determine whether a bank has enough capital to withstand the impact of adverse economic developments. In the United States, banks with $50 billion or more in assets are required to undergo internal stress tests conducted by their own risk management teams as well as by the Federal Reserve.
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