The Federal Reserve has announced the schedule for the release of its 2018 stress test results, with the Dodd-Frank Act Stress Test results set to be unveiled on June 21 and the Comprehensive Capital Analysis and Review stress tests results to be released on June 28.
It's been clear that the central bank would issue the stress test results by the end of June, but the specific dates of the releases are generally not announced until a few weeks before that deadline. Both releases will be made public at 4:30 p.m.
DFAST and CCAR are among the most important supervisory tools the Fed uses to examine banks. Federal Reserve chairman Jerome Powell called stress testing among the most important post-crisis innovations.
But the agency has suggested some changes to the stress testing regime. Last December, the Fed proposed some changes to the amount of insight that banks get into the Fed's proprietary models, addressing what Vice Chairman for Supervision Randal Quarles said was a lack of transparency in the stress testing process. More recently, the agency proposed revamping the capital requirements that banks have to meet to pass the stress tests. Neither of those proposals are finalized and will not apply to this year's stress test.
This year's round of stress tests is notable, however, as the first year that several foreign banks will be subject to the full stress testing regime. Many foreign bank have struggled with the qualitative aspects of the stress test in years past, increasing the likelihood that some of those banks may face similar difficulties this year.