mercredi 11 mars 2015
Bank Stress Test Results
Posted on 13:52 by nice news
The Federal Reserve on Wednesday announced it has not objected to the capital plans of 28 bank holding companies participating in the Comprehensive Capital Analysis and Review (CCAR). One institution received a conditional non-objection based on qualitative grounds, and the Federal Reserve objected to two firms' plans on qualitative grounds.
In its fifth year, CCAR evaluates the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies, including the firms' planned capital actions such as dividend payments and share buybacks and issuances. Strong capital levels act as a cushion to absorb losses and help better ensure that banking organizations have the ability to lend to households and businesses even in times of stress.
When considering an institution's capital plan, the Federal Reserve considers both quantitative and qualitative factors. These include, respectively, a firm's projected capital ratios under a hypothetical scenario of severe economic and financial market stress and the strength of the firm's capital planning processes. The Federal Reserve may object to a capital plan based on quantitative or qualitative concerns. After the Federal Reserve objects to a capital plan, the institution may not make any capital distribution unless expressly permitted by the Federal Reserve.
In its fifth year, CCAR evaluates the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies, including the firms' planned capital actions such as dividend payments and share buybacks and issuances. Strong capital levels act as a cushion to absorb losses and help better ensure that banking organizations have the ability to lend to households and businesses even in times of stress.
When considering an institution's capital plan, the Federal Reserve considers both quantitative and qualitative factors. These include, respectively, a firm's projected capital ratios under a hypothetical scenario of severe economic and financial market stress and the strength of the firm's capital planning processes. The Federal Reserve may object to a capital plan based on quantitative or qualitative concerns. After the Federal Reserve objects to a capital plan, the institution may not make any capital distribution unless expressly permitted by the Federal Reserve.
Bank Stress Test Results
Categories: Bank Stress Test Results
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