Banks must be able to demonstrate that chosen internal capital targets are well founded and that these targets are consistent
with their overall risk profile and current operating environment. In assessing capital adequacy, bank management needs to
be mindful of the particular stage of the business cycle in which the bank is operating. Rigorous, forward-looking stress
testing that identifies possible events or changes in market conditions that could adversely impact the bank should be performed.
Bank management clearly bears primary responsibility for ensuring that the bank has adequate capital to support its risks.