On January 28, 2016, the US Federal Reserve Board released supervisory scenarios for the 2016 Comprehensive Capital Analysis and Review and Dodd-Frank Wall Street Reform and Consumer Protection Act stress test exercises. The Federal Reserve Board also issued instructions to firms participating in CCAR. CCAR assesses the capital planning processes and capital adequacy of the largest US-based bank holding companies, including the firms' planned capital actions. The Dodd-Frank Act stress tests are a forward-looking component to help evaluate whether firms have sufficient capital. Firms are required to use the supervisory scenarios in both the stress tests conducted as part of CCAR and those required by the Dodd-Frank Act. The outcomes are measured under three scenarios: severely adverse, adverse and baseline. This year, CCAR will include 33 bank holding companies with $50 billion or more in total consolidated assets, all of which are required to submit their capital plans and stress testing results to the Federal Reserve Board on or before April 5, 2016. The Federal Reserve Board will announce the results of its supervisory stress tests by June 30, 2016, with the exact date to be announced later.
The Federal Reserve Board press release is available at: http://www.federalreserve.gov/newsevents/press/bcreg/20160128a.htm the CCAR summary instructions are available at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20160128a1.pdf?_sm_au_=iVVR7nBMts6MMSFH and the Dodd-Frank Act stress test exercises are available at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20160128a2.pdf?_sm_au_=iVVR7nBMts6MMSFH. The 2016 macro scenario tables are available at: http://www.federalreserve.gov/newsevents/press/bcreg/2016-macro-scenario-tables.zip.
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