(4)Even though the level of realised LGDs and realised CFs may be substantially above the long-run average as a result of an economic downturn, the conditions characterising an economic downturn should not be considered as the equivalent of the conditions used for stress testing. The conditions used for stress testing may be more severe and potentially use more extreme scenarios that are not necessarily based on historical observations. Regulation (EU) No 575/2013, and the delegated acts that supplement it, adequately provide for the carrying out of stress testing in cases where this is required, and the provisions relating to own-LGD and own-CF estimates do not include any such requirement for stress testing. The specification of an economic downturn for the purposes of own-LGD and own-CF estimates should be based instead on historically observed economic conditions.