Release Date: December 10, 2015
For release at 9:00 a.m. EST
The Federal Reserve Board on Thursday announced that it has not objected to the resubmitted capital plan from the Bank of America Corporation.
The Board in March required Bank of America to resubmit its capital plan to address certain deficiencies in its capital planning processes, following the review of the firm's capital plan in the Board's Comprehensive Capital Analysis and Review (CCAR). Those deficiencies included weaknesses in aspects of the firm's loss and revenue modeling practices and its internal controls. Bank of America has made progress in remediating the identified deficiencies in its capital planning processes.
In communicating its decision to Bank of America, the Federal Reserve indicated that the firm must continue to make steady, demonstrable progress prior to the 2016 CCAR cycle toward establishing and maintaining sound risk-management and capital-planning processes that are commensurate with the size and complexity of its operations and systemic importance.
CCAR evaluates the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies, including the firms' planned capital actions such as dividend payments and share buybacks and issuances. Strong capital levels act as a cushion to absorb losses and help ensure that banking organizations have the ability to lend to households and businesses even in times of stress.