Large Bank Examination Workshop February 2026

Stress Testing Capital • CCAR is a forward-looking quantitative evaluation of bank capital that demonstrates how a hypothetical macroeconomic recession scenario would affect firm capital ratios. • For the first several years of stress testing, CCAR was a public exercise that included a quantitative and qualitative assessment.  The quantitative assessment evaluated whether banks had sufficient capital to continue operations throughout times of economic and financial market stress.  The qualitative assessment evaluated whether banks had robust, forward-looking capital planning processes that account for their unique risks.

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Evolution of CCAR

• In 2019, the Board incorporated the qualitative evaluation into the standard, confidential supervisory process. • In 2020, the Federal Reserve replaced the quantitative CCAR evaluation with the stress capital buffer. • The stress capital buffer requirement simplifies the Board's capital framework by integrating the Board's non-stress regulatory capital requirements with its stress-test-based capital requirements under CCAR.

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