An error in a historical dataset provided to banking organizations for 2019 Dodd-Frank Act stress tests was corrected, and the stress scenarios reissued, Wednesday, the Federal Reserve Board said in a release.
The correction was made to the mortgage rate provided for the fourth quarter of 2018, one of the domestic variables provided for the scenarios. The rate, shown on p. 10, under Table 1.A, originally showed a Q4 2018 mortgage rate of 4.6% when it should have been 4.8%.
“All other variables, both their historical values and projected values in the hypothetical scenarios, are unchanged,” the Fed said in its release, adding that the scenarios “are not forecasts of the Federal Reserve.”
Banks are required to submit their capital plans and the results of their own stress tests to the Federal Reserve by April 5, 2019, according to the Fed’s Feb. 5 announcement of the test scenarios. The Fed says it plans to announce the results of its supervisory stress tests by June 30. (It said instructions for this year’s Comprehensive Capital Analysis and Review, or CCAR, would be released at a later date.)
2019 Stress Test Scenarios (with correction)
Federal Reserve Board identifies error in historical dataset used in its 2019 stress tests and issues correction
RR: Fed, OCC release scenarios for 2019 CCAR, stress-test exercises (Feb. 5, 2019)