2017 Stress Tests Using the Bank Call Report Forecasts

In this study, we share the results of our stress test of 16 non-complex, super-regional, CCAR banks using our new industry Bank Call Report Forecasts solution. Based on call report data from the FDIC, the purely quantitative model provides an impartial view about a bank’s capacity to withstand an adverse economic scenario. We highlight nine-quarter baseline and stressed loan charge-offs, deposits and capital ratios.

 

The results show that these banks retain significant capital cushions even under the “severely adverse” economic scenario designed by the Federal Reserve for this year’s CCAR process. Net charge-offs under the “severely adverse” scenario remained manageable and well below the peaks of the financial crisis. Single-family residential real estate loans suffered only modestly under a renewed stress event while the tier-1 capital ratio for the peer group stayed above 10% through the entire stress event.

 

Download this study for the full analysis.