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.