The scenario for this standard entails a combined idiosyncratic and market-wide shock that would result in:

(a)  the run-off of a proportion of retail deposits;

(b)  a partial loss of unsecured wholesale funding capacity;

(c)  a partial loss of secured, short-term financing with certain collateral and counterparties;

(d)  additional contractual outflows that would arise from a downgrade in the bank’s public credit rating by up to and including three notches, including collateral posting requirements;

(e)  increases in market volatilities that impact the quality of collateral or potential future exposure of derivative positions and thus require larger collateral haircuts or additional collateral, or lead to other liquidity needs;

(f)  unscheduled draws on committed but unused credit and liquidity facilities that the bank has provided to its clients; and

(g)  the potential need for the bank to buy back debt or honour non-contractual obligations in the interest of mitigating reputational risk.