12 CFR § 1238.2 - Definitions.

---
identifier: "/us/cfr/t12/s1238.2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1238.2 - Definitions."
title_number: 12
title_name: "Banks and Banking"
section_number: "1238.2"
section_name: "Definitions."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "B"
subchapter_name: "ENTITY REGULATIONS"
part_number: "1238"
part_name: "STRESS TESTING OF REGULATED ENTITIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1426; 4513; 4526; 4612; 5365(i)."
regulatory_source: "78 FR 59222, Sept. 26, 2013, unless otherwise noted."
cfr_part: "1238"
---


# 1238.2 Definitions.

For purposes of this part, the following definitions apply:

*Planning horizon* means the period of time over which the stress projections must extend. The planning horizon cannot be less than nine quarters.

*Scenarios* are sets of economic and financial conditions used in the Enterprises' stress tests, including baseline and severely adverse.

*Stress test* is a process to assess the potential impact on an Enterprise of economic and financial conditions (“scenarios”) on the consolidated earnings, losses, and capital of the Enterprise over a set planning horizon, taking into account the current condition of the Enterprise and the Enterprise's risks, exposures, strategies, and activities.

[85 FR 16530, Mar. 24, 2020]