-
WASHINGTON Risks posed by rising interest rates are once again a top theme in stress test scenarios released by the Federal Reserve Board on Thursday.
October 23 -
Regulators are expecting financial institutions to provide detailed modeling of deposits and ever-greater documentation in the next round of stress tests, bankers and consultants say.
November 10 -
The Federal Reserve Board denied the capital plans of Citigroup, HSBC, RBS Citizens, Santander and Zions in its second round of stress tests this year.
March 26
WASHINGTON - The Federal Reserve Board on Thursday announced release dates for its 2015 stress test results.
The Dodd-Frank Act Stress Test results will be published on March 5 and the Comprehensive Capital Analysis and Review results will be published on March 11. The results of both tests will be released at 4:30pm.
The Fed runs both stress tests annually for banking companies with over $50 billion in assets. Both tests measure institutions' performance over the next nine quarters under varying degrees of stressed scenarios. Banks are typically assessed on how well they would respond to a mild stress event, a moderate stress event and a severely adverse scenario.
DFAST takes the financial information from each bank and runs it through each scenarios using a standardized capital management plan. CCAR, meanwhile, runs each bank's financial information through the institution's own capitalization plan, measuring how each bank would navigate the scenarios on its own.
Banks that fail to retain a minimum capitalization standard through all three scenarios can be forced to change their capitalization plans, or in more extreme circumstances can be compelled to limit their dividend offerings for the year. Last year, five firms - most notably Citigroup - failed their CCAR capital plan examinations and had to resubmit their plans.
