Stress Tests and Capital Planning
Dodd-Frank Act Stress Tests
The DFA stress tests are a set of forward-looking exercises conducted both by the Federal Reserve and by financial companies regulated by the Federal Reserve. The stress tests were mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and are intended to ensure institutions have sufficient capital to absorb losses and support operations during adverse economic conditions so that they do not pose risks to their communities, other institutions, or the broad economy.
Bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies that the Financial Stability Oversight Council has designated for supervision by the Federal Reserve will undergo an annual supervisory stress test and semi-annual company-run stress tests. These firms will begin stress testing under DFA stress test rules in 2012. The firms will make summaries of the results of the company-run stress tests available to the public starting in March 2013.
Bank holding companies with total consolidated assets between $10 billion and $50 billion and savings and loan holding companies and state member banks with total consolidated assets of more than $10 billion will undergo annual company-run stress tests. Generally, these firms began stress testing in 2013 and will make summaries of the results of the company-run stress tests available to the public starting in June 2015.
Related Press Releases
- Federal Reserve Board issues final policy statement for developing scenarios for future capital planning and stress testing exercises--November 7, 2013
- Federal Reserve Board issues interim final rules clarifying how companies should incorporate Basel III reforms into capital and business projections
- Federal Reserve Board releases paper on capital planning at large bank holding companies
- Agencies seek comment on Dodd-Frank Act stress test guidance for medium-sized firms--July 30, 2013
- Federal Reserve Board announces that results of company-run, midyear stress tests are due on July 5--May 13, 2013
- Federal Reserve releases summary results of bank stress tests--March 7, 2013
- Federal Reserve Board publishes two final rules with stress testing requirements for certain bank holding companies, state member banks, and savings and loan holding companies--October 9, 2012
Notices on Data Collections
- Federal Register / Vol. 77 No. 193 / Thursday, October 4, 2012 (PDF)
- Federal Register / Vol. 77 No. 124 / Wednesday, June 27, 2012 (PDF)
- Federal Register Notice for publication Monday, June 4, 2012 (PDF)
- Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 (PDF)
- Federal Register / Vol. 76, No. 229 / Tuesday, November 29, 2011 (PDF)
- Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 (PDF)
- Policy Statement on the Scenario Design Framework for Stress Testing (PDF)
- Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current Practice (PDF)
- Dodd-Frank Act Stress Test 2013: Supervisory Stress Test Methodology and Results: HTML | PDF