Featured Product

    FED Publishes Results of the 2019 CCAR Exercise for Banks

    June 27, 2019

    FED published results of the Comprehensive Capital Analysis and Review, or CCAR, for 2019. This year's CCAR reveals that the largest banks have strong capital levels and virtually all are meeting the supervisory expectations for capital planning. Consequently, FED is not objecting to the capital plans of all 18 firms, though it is requiring Credit Suisse to address certain limited weaknesses in its capital planning processes by October 27, 2019.

    The firms in the test have significantly increased their capital since the first round of stress tests in 2009. In particular, the largest and most complex banks have more than doubled their common equity capital from about USD 300 billion to roughly USD 800 billion during that time. "The results show that these firms and our financial system are resilient in normal times and under stress," said Vice Chair for Supervision Randal K. Quarles. However, FED observes that, on balance, most of the firms participating in the CCAR 2019 qualitative assessment have continued to strengthen their capital planning practices since last year, with many of those firms meeting supervisory expectations for capital planning. Certain firms that are newer to CCAR have additional work to undertake to have sound, established capital planning practices and a limited number of firms that have been subject to the qualitative assessment for a number of years have certain weaknesses that limit their capital planning capabilities. 

    The Comprehensive Capital Analysis and Review, or CCAR, evaluated the capital planning processes and capital adequacy of 18 of the largest banking firms, including the firms' planned capital actions, such as dividend payments and share buybacks. FED considers both quantitative and qualitative factors when evaluating a bank's capital plan. Quantitative factors include a bank's projected capital ratio under a hypothetical severe recession. Qualitative factors include the firm's capital planning process, including its risk management, internal controls, and governance practices. FED can object to the capital plans of all banks in CCAR each year on quantitative grounds and firms that have been in CCAR for less than four years are also subject to an objection on qualitative grounds. If FED objects to a firm's capital plan, the bank cannot make any capital action unless authorized by FED. The CCAR quantitative assessment uses the same results as Dodd-Frank Act Stress Test (DFAST) and incorporates firms’ planned capital actions, such as dividend payments and common stock repurchases.

     

    Related Links

    Keywords: Americas, US, Banking, Stress Testing, CCAR, DFAST, Credit Suisse, Capital Planning, Dodd-Frank Act, Basel III, FED

    Featured Experts
    Related Articles
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages

    OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.

    April 13, 2021 WebPage Regulatory News
    News

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.

    April 12, 2021 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in April 2021

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.

    April 12, 2021 WebPage Regulatory News
    News

    ESMA Issues Notification Templates for STS Synthetic Securitizations

    ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.

    April 09, 2021 WebPage Regulatory News
    News

    EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks

    EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.

    April 09, 2021 WebPage Regulatory News
    News

    EIOPA Study Examines Internal Model Market and Credit Risks Under SII

    EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.

    April 09, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    FED Proposes to Automate Bank Stock Adjustment Using Call Report Data

    FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.

    April 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6835