The Federal Reserve announced on Monday that the results from supervisory stress tests conducted in accordance with the Dodd-Frank Act will be released on March 7.
The Fed conducts annual stress tests, though some large companies are also required to conduct their own stress tests, to determine whether financial institutions are holding adequate capital to cushion against economic downturn and market blows. The results from the stress tests will include capital ratios, loss estimates under severely adverse scenarios and revenue information.
Additionally, results from the Comprehensive Capital Analysis and Review will be released on March 14. The CCAR is an annual test by the Federal Reserve to determine whether financial institutions have enough capital to continue operations over the next two years, under the assumptions of economic and financial stress, in order to gauge whether banks have accounted for their risks.
The Fed will evaluate each firm’s plans to make capital distributions such as stock repurchases, planned acquisitions and dividend payments, as well as their capital ratios under a severely adverse economic scenario. The Fed will also examine the risk-measurement and risk-management programs of financial institutions.Aufblasbare Pool
Some banks that are required to undergo stress testing include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.