FED announced the schedule for the results from Dodd-Frank Act stress testing (DFAST) and Comprehensive Capital Analysis and Review (CCAR). FED notified that results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act will be released on June 21, 2018 and results from the related CCAR will be released on June 28, 2018.
Stress tests help ensure that banks have adequate capital to absorb losses to enable them to lend to households and businesses, even in a serious recession. DFAST is a forward-looking assessment of capital sufficiency using the standard capital plan assumptions across all firms. CCAR evaluates the capital planning practices and capital adequacy of the largest domestic and foreign bank holding companies, using the firms' planned capital actions such as dividend payments and share buybacks and issuances. While DFAST is complementary to CCAR, both efforts are distinct testing exercises that rely on similar processes, data, supervisory exercises, and requirements.
Keywords: Americas, US, Banking, Stress Testing, DFAST, CCAR, Schedule for Results, FED