February 12, 2015
Federal Reserve Board announces release dates for the latest supervisory stress tests results and related results from the Comprehensive Capital Analysis and Review
For release at 2:00 p.m. EST
The Federal Reserve Board on Thursday announced that results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act will be released on Thursday, March 5, and the related results from the Comprehensive Capital Analysis and Review (CCAR), will be released on Wednesday, March 11. Results for both exercises will be released at 4:30 p.m.
The Dodd-Frank Act stress tests are forward-looking exercises conducted by both Federal Reserve supervisors and by large bank holding companies supervised by the Federal Reserve. The exercises help assess whether institutions have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over a period of nine quarters. The results of the tests conducted by Federal Reserve supervisors will include data such as projected post-stress capital ratios, revenue, and loss estimates under hypothetical adverse and severely adverse scenarios previously published by the Federal Reserve. The standardized capital actions used for the Dodd-Frank Act stress tests assume no changes in recent levels of dividend payments and no common stock repurchases for each participating bank holding company and allow the results to be compared across the firms. The same institutions will separately release their company-run Dodd-Frank Act stress test results on or before Friday, March 20.
CCAR is an annual exercise by the Federal Reserve to help assess whether large bank holding companies have robust, forward-looking capital planning processes that account for their unique risks and are supported by the companies' risk-measurement and -management practices. As part of the CCAR, the Federal Reserve evaluates each firm's plans to make capital distributions, such as dividend payments, stock repurchases, or planned acquisitions. CCAR results will include post-stress capital ratios under hypothetical adverse and severely adverse scenarios published by the Federal Reserve and will reflect the capital actions the companies plan to undertake during the nine-quarter period. In addition to the quantitative results, the Federal Reserve will indicate whether it has objected to a firm's capital plan based on qualitative grounds.
The instructions, scenarios, and further information regarding the 2015 Dodd-Frank Act stress tests and CCAR are available on the Board's website.
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