Stress Testing by the Numbers
$213bn
During the MCST, aggregate industry losses were posted at $213 billion, with provisions of $269 billion to cover the losses.
102%
Increase in weighted average Tier 1 common equity ratio for CCAR 2013 institutions since the end of 2008.1
12
Number of bank holding companies added to CCAR 2014.2
70%
For the Federal Reserve scenarios, the senior RMBS notes would lose, on average, about 35%, while the mezzanine notes would lose around 70%.
90+
Number of CCAR FR Y-14 reports.
100%
Minimum ratio of liquidity coverage that institutions should continuously meet, as required by regulatory standards.
35.9%
Percentage of $213 billion in aggregate industry losses contributed by credit cards during the MCST.
60-70%
In commercial real estate and mortgage portfolios, often only 60-70% of the losses are realized as charge-offs in the first four quarters.
7
Principles of an effective capital adequacy process, as defined by the Federal Reserve.3
2-to-1
To this day, total mortgage delinquency exceeds auto and credit card delinquency by almost 2-to-1.
100+
Number of people involved in the regulatory stress test exercises reported by some banks.
78%
Percentage of CCAR 2013 institutions receiving an unconditional “Non-objection” to their capital plan from the Federal Reserve.4
Sources
1 Board of Governors of the Federal Reserve System, Comprehensive Capital Analysis and Review 2013: Assessment Framework and Results, March 2013.
2 Board of Governors of the Federal Reserve System, Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current Practice, August 2013.
3 Board of Governors of the Federal Reserve System, Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current Practice, August 2013.
4 Board of Governors of the Federal Reserve System, Comprehensive Capital Analysis and Review 2013: Assessment Framework and Results, March 2013.
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