The Federal Reserve Board ("FRB") and the OCC (together, the "agencies") released annual stress testing hypothetical scenarios (see here and here, respectively) for large banks. The agencies stated that (i) the "baseline scenario for the United States is a moderate economic expansion over the 13-quarter scenario period," and (ii) the "severely adverse scenario is characterized by a severe global recession accompanied by a period of heightened stress in commercial real estate and corporate debt markets."

The FRB stated that 19 large banks will be subject to the stress test in 2021 and must submit their tests by April 5, 2021.