FRB announces schedule for results from Dodd-Frank Act stress tests and CCAR
June 02, 2017 / Source: FRB
June 01, 2017
For release at 1:30 p.m. EDT
Results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act will be released on Thursday, June 22, and the results from the Comprehensive Capital Analysis and Review (CCAR) will be released on Wednesday, June 28, the Federal Reserve Board announced on Thursday. Results for both exercises will be released at 4:30 p.m. EDT.
The Dodd-Frank Act stress tests are forward-looking exercises conducted by both the Federal Reserve and by large bank holding companies supervised by the Federal Reserve. The exercises assess whether firms have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over nine quarters. The results of the supervisory tests conducted by the Federal Reserve will include data such as projected post-stress capital ratios, revenue, expense, 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 firms will separately release their company-run Dodd-Frank Act stress test results on or before July 7.
CCAR is an annual exercise undertaken by the Federal Reserve to assess whether large bank holding companies have forward-looking capital planning processes that account for their unique risks and are supported by sound risk-measurement and -management practices. As part of CCAR, the Federal Reserve evaluates each firm's plans to make capital distributions, such as dividend payments, stock repurchases, as well as 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 firms plan to undertake during the nine-quarter period.
In a change from last year, the qualitative portion of CCAR, which evaluates the strength of each firm's capital planning processes, no longer applies to 21 firms with less complex operations. Rather, the capital planning processes of these firms will be evaluated in the normal course of supervision. The 13 larger and more complex firms continue to be subject to the qualitative assessment of CCAR.
The instructions, scenarios, and further information regarding the 2017 Dodd-Frank Act stress tests and CCAR are available on the Board's website.
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Last Update: June 01, 2017