FED Releases Results of Comprehensive Capital Analysis and Review
FED released results of the Comprehensive Capital Analysis and Review (CCAR). It completed review of the capital planning practices of the nation's largest banks and did not object to the capital plans of all 34 bank holding companies participating in CCAR. However, FED is requiring Capital One Financial Corporation to address the identified weaknesses in its capital planning process and resubmit its capital plan by the end of 2017.
This year, 13 of the largest and most complex banks were subject to both the quantitative and qualitative assessments while 21 other firms in CCAR were subject only to the quantitative assessment. U.S. firms have substantially increased their capital since the first round of stress tests led by the FED in 2009. The common equity capital ratio—which compares high-quality capital to risk-weighted assets—of the 34 bank holding companies in the 2017 CCAR has more than doubled from 5.5% in the first quarter of 2009 to 12.5% in the first quarter of 2017. This reflects an increase of more than USD 750 billion in common equity capital to a total of USD 1.25 trillion during the same period.
Related Links: CCAR Results (PDF)
Keywords: Americas, FED, Banking, CCAR, Stress Testing, DFast
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