Federal Reserve Paper: Capital Planning at Large Bank Holding Companies: Supervisory Expectations and the Range of Current Practice

The Board of Governors of the Federal Reserve System issued a paper evaluating the capital planning process at large bank holding companies. The agency found that while the process has improved, more work needs to be done to enhance practices for assessing the capital necessary to withstand stressful economic and financial conditions. The paper noted various aspects that need the most improvement, including: accounting risks for specific business activities, methods of projecting the effect of certain stresses on capital needs, and governance of the capital-planning process.

See: Capital Planning at Large Bank Holding Companies.See also: Federal Reserve Press Release.