Fed slates June 25 release of stress test, CCAR results

 – UPDATE: 2020 stress test results out; share buybacks prohibited, dividends capped for 3rd quarter; see story – 

Results from 34 big banking firms’ Dodd-Frank Act stress tests and from the related comprehensive capital analysis and review (CCAR) – along with a look at risks posed by the coronavirus response – will be released at 4:30 p.m. ET on June 25, the Federal Reserve Board announced Tuesday.

The Fed said 34 banks having more than $100 billion in total consolidated assets each are subject to this year’s stress tests. The tests are to help ensure that banks have adequate capital to absorb losses so that they can lend to households and businesses even in a serious recession. (CCAR, the Fed has noted, consists of both the stress tests that assess firms’ capital needs under stress and, for the largest and most complex banks, a qualitative evaluation of the practices these firms use to determine their capital needs in normal times and under stress.)

“This year’s release will also include additional analyses that explore how plausible risks to the economy stemming from the coronavirus response could affect bank capital,” the Fed noted.

Federal Reserve Board announces that results from both its Dodd-Frank Act stress tests and the related Comprehensive Capital Analysis and Review will be released on Thursday, June 25, at 4:30 p.m. EDT