THIS WEEK: Stress-test, CCAR results due out Thursday from Fed; NCUA, FDIC boards to meet

The Federal Reserve is due two days from today to release stress-test results for 34 big banks – along with related comprehensive capital analysis and review (CCAR) results – based on a scenario developed in February, before the coronavirus (COVID-19) crisis in the U.S. became apparent.

Also coming up are open meetings of the National Credit Union Administration (NCUA) Board and the Federal Deposit Insurance Corp. (FDIC) Board. Both meetings are slated Thursday at 10 a.m. ET.

Thursday’s release of stress-test and CCAR results is scheduled for 4:30 p.m. ET, the Federal Reserve Board said in an announcement earlier this month. A total of 34 banks having more than $100 billion in total consolidated assets each are subject to this year’s stress tests, which are intended 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. The Fed said the release “will also include additional analyses that explore how plausible risks to the economy stemming from the coronavirus response could affect bank capital.”

Last week, Fed Vice Chair for Supervision Randal Quarles said the central bank will include in its report three “downside risk paths” for the economy that have emanated from the pandemic, but this will not address risks to individual banks.

Also on Thursday:

  • The NCUA Board meets at 10 a.m. The board is set to consider release of a proposed rule on risk-based net worth and a final rule making technical amendments to agency rules; and to receive briefings on the NCUA Guaranteed Notes Oversight Program and the Minority Deposit Institution Annual Report. A request for information on “Strategies for Future Examination and Supervision Utilizing Digital Technology” is also on the open meeting agenda.
  • The FDIC Board meets at 10 a.m. as well. The board is slated to issue a proposed rule on branch application procedures and will consider final rules on Volcker rule covered funds provisions; swap margin requirements; and interest rates on loans that are sold or transferred (the “valid-when-made” rule).

In light of the ongoing health crisis, both the NCUA and FDIC open meetings will be webcast and viewable online only.