Dodd-Frank Act Mid-Cycle Stress Tests 2013: Summary Instructions
Report Submitted to Supervisors
BHCs must submit their mid-cycle company-run stress test results to the Federal Reserve no later than July 5 of each calendar year, in accordance with the Board's covered company rule. BHCs must use the FR Y-14A Summary schedule to report the results of their company-run stress tests and the FR Y-14A Scenario schedule to report the scenarios they develop to use in the mid-cycle stress test.3 Each BHC must submit its FR Y-14A and any supporting information to the Federal Reserve through a secure collaboration site.
BHCs should reference the instructions associated with each schedule to determine how to complete that schedule. BHCs will report on the FR Y-14A Summary schedule their estimates of losses, resources available to absorb those losses, balance sheet positions, and capital composition on a quarterly basis over the nine-quarter planning horizon, beginning with the second quarter of the current calendar year. BHCs should complete the "Capital Worksheet--DFAST" tab of the FR Y-14A Summary schedule, but should leave the "Capital Worksheet--CCAR" tab blank.4 Each BHC must also submit the FR Y-14A Scenario schedule to report the paths of the variables used in its baseline, adverse, and severely adverse scenarios.
In accordance with the FR Y-14A Summary schedule instructions, each BHC must submit information supporting its projections. In addition to the quantitative projections collected on the FR Y-14A, each BHC is required to submit qualitative information supporting its projections. For the mid-cycle company-run stress test, a BHC is not required to resubmit the full set of documentation that it provided for the annual company-run stress. The BHC should submit information on any material changes to its stress-testing methodologies or processes that have occurred since the company submitted documentation supporting its annual company-run stress test, including any changes in response to feedback from the Federal Reserve. The supporting information that was included in the BHC's previously submitted capital plan does not need to be resubmitted, provided that information is still an accurate description of the methodologies and processes the BHC used to conduct its mid-cycle company-run stress test.
3. The FR Y-14 schedules are available at www.federalreserve.gov/apps/reportforms/default.aspx. Return to text
4. As discussed below, in conducting its mid-cycle company-run stress test, a company must incorporate the capital action assumptions set forth in the covered company rule. The "Capital Worksheet - CCAR" tab of the FR Y-14A Summary schedule relates to stress tests that are conducted under the Board's capital plan rule (12 CFR 225.8), which incorporate a company's planned capital actions. Return to text