Results of this year’s supervisory stress tests and from the related Comprehensive Capital Analysis and Review (CCAR) are set to be released June 21 and June 27, respectively, the Federal Reserve Board said Friday.
The Fed said results from both exercises will be announced at 4:30 p.m. EDT on the appointed days.
“This year only the largest and most complex banks – generally those with total consolidated assets of $250 billion or more – are subject to stress testing,” the Fed said in Friday’s announcement. It reiterated what it said in February, that these institutions, which it described as less complex, will not be subject to the stress test during the 2019 cycle. (The Fed in February also noted that the capital distributions of these less-complex banks for this year “will be largely based on the results from the 2018 supervisory stress test.”)
The supervisory stress tests, created under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), are a forward-looking assessment of capital sufficiency using standard capital action assumptions for the largest domestic and foreign bank holding companies, the central bank noted. CCAR evaluates the capital planning and capital adequacy of the same firms but incorporates their planned capital actions, such as dividend payments and share buybacks and issuances, it noted.
For 13 big financial firms, Fed won’t use ‘qualitative objection’ in 2019 CCAR cycle; full phase-out by 2021 (March 7, 2019)
Fed, OCC release scenarios for 2019 CCAR, stress-test exercises (Feb. 5, 2019)