If you're subjected to a regulation with periodic reporting, you're just not going to play and look bad on a report if you can avoid it. And you know parameters

If you're subjected to a regulation with periodic reporting, you're just not going to play and look bad on a report if you can avoid it. And you know parameters will be refreshed SVB did lobby so it could play the game it wanted, it looks like it was a basic game from what I can read in the media. In Europe the current test is page 5, 2023 10 year interest rate at 4.5% in the stress test, and you see that it's a moving target (nice historical graph): https://www.eba.europa.eu/sites/default/documents/files/document_library/Risk%20Analysis%20and%20Data/EU-wide%20Stress%20Testing/2023/Scenarios/Updated/1052423/2023%20EBA%20Stress%20Test%20adverse%20scenario%20%28updated%201%20March%202023%29.pdf https://www.eba.europa.eu/sites/default/documents/files/docu... Incentives matter ... While regulation will not prevent failure, it helps. We already know what happens after deregulation of risk management in banking. Disclaimer: worked for a decade in finance, including on software used for those report computations...