Fed due to release bank stress-test results Thursday; CCAR results out a week later

The Federal Reserve Board is scheduled to release results of its latest supervisory stress tests Thursday and, a week later, to report on results from the related comprehensive capital analysis and review (CCAR).

The Fed Board met in closed session Wednesday for an update on the CCAR review and stress tests for 2018.

The stress tests gauge the capital adequacy of banks to absorb losses, even in a serious recession, while remaining able to provide loans to households and businesses. “The Dodd-Frank Act stress tests are a forward-looking assessment of capital sufficiency using standard capital plan assumptions across all firms,” the Fed noted.

The results of the related CCAR will be released on June 28, the Fed said. The CCAR analysis, according to the Fed, evaluates the capital planning practices and capital adequacy of the largest domestic and foreign bank holding companies, using the firms’ planned capital actions such as dividend payments and share buybacks and issuances.

Both sets of results are scheduled to become public at 4:30 p.m. ET on the days of their release.