Results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act will be released on Friday, June 21, and the results from the related Comprehensive Capital Analysis and Review (CCAR) will be released on Thursday, June 27, the Federal Reserve Board announced on Friday. Results for both exercises will be announced at 4:30 p.m. EDT.
Stress tests help ensure that banks have adequate capital to absorb losses so that they can lend to households and businesses even in a serious recession. The Dodd-Frank Act stress tests are a forward-looking assessment of capital sufficiency using standard capital action assumptions for the largest domestic and foreign bank holding companies. CCAR evaluates the capital planning and capital adequacy of the same firms, but incorporates their planned capital actions, such as dividend payments and share buybacks and issuances as mentioned by the Federal Reserve Board.
This year only the largest and most complex banks—generally those with total consolidated assets of $250 billion or more—are subject to stress testing. As previously announced by the Board, less-complex banks will not be subject to the stress test during the 2019 cycle.
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