The results of the latest round of stress tests on the big U.S. banks will be released in late March, the U.S. Federal Reserve Board said Tuesday.
The Fed said the stress tests will be released on March 20 at 16:00 ET. The results from its capital review process (known as the Comprehensive Capital Analysis and Review, or CCAR) will be released on March 26 at 16:00 ET, it added.
The stress tests, which are forward-looking exercises conducted by the Fed and large financial companies supervised by the Fed, aim to assess whether major financial institutions have sufficient capital to absorb losses and support operations during adverse, and severely adverse, economic and financial market conditions over a period of nine quarters. The Fed says that the results will include data such as post-stress capital ratios, revenue, and loss estimates under hypothetical adverse and severely adverse scenarios.
The CCAR is an annual exercise to help assess whether the companies have robust, forward-looking capital planning processes that account for their unique risks and are supported by the firms’ risk-measurement and -management practices. As part of that process, the Fed evaluates each company’s plans to make capital distributions, such as dividend payments, stock repurchases, or planned acquisitions. Those results will include post-stress capital ratios under hypothetical adverse and severely adverse scenarios, assuming they implement their planned capital actions.