The conclusion during COVID was that the stress tests were too stringent and COVID was much better for the banks than worst case stress tests. Basically stress

The conclusion during COVID was that the stress tests were too stringent and COVID was much better for the banks than worst case stress tests. Basically stress tests simulate large drops in asset values, but during COVID the trading desks made bucketloads of money when volatility was high. The financial sector is pretty resilient these days, the risky stuff mostly moved off bank balance sheets into private funds not subject to the same regulatory requirements.