WASHINGTON—Perhaps an indicator of what credit unions might face down the road, the Federal Reserve Board has issued the supervisory scenarios that will be used in the 2015 capital planning and stress testing program.
The program includes the Comprehensive Capital Analysis and Review (CCAR) of 31 bank holding companies with $50 billion or more of total consolidated assets.
According to the Fed, the aim of the annual reviews is to ensure that large financial institutions have robust, forward-looking capital planning processes that account for their unique risks, and to help ensure that they have sufficient capital to continue operations throughout times of economic and financial stress.
The Federal Reserve said it will require institutions to use the supervisory scenarios in both the stress tests conducted as part of the CCAR and in the stress tests that are part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Some companies that are not part of CCAR, including state member bank subsidiaries of CCAR participants and some companies with between $10 billion and $50 billion in assets, also will use the supervisory scenarios for Dodd-Frank Act stress tests.