FRB Releases Results of Comprehensive Capital Analysis and Review

The Board of Governors of the Federal Reserve System ("FRB") published its "Comprehensive Capital Analysis and Review 2015" ("CCAR"). The CCAR evaluated the capital planning processes and capital adequacy of the largest U.S.-based bank holding companies.

According to its press release, the FRB issued a conditional non-objection based on qualitative grounds to the plans of one of the institutions evaluated by it, and objected to two firms' plans on qualitative grounds. The FRB did not object to any plans based on quantitative grounds.

The FRB also stated that "U.S. firms have substantially increased their capital since the first round of stress tests" in 2009.

Additionally, the FRB released corrected results from its Dodd-Frank Act stress tests from March 5, 2015. According to the FRB, four participating firms submitted incorrect data, which affected their starting tier 1 common capital ratios and, by extension, their post-stress minimum and ending tier 1 common capital ratios in severely adverse and adverse scenarios. The corrections led to increases in the ratios for the affected firms.

See: FRB Press Release; Comprehensive Capital Analysis and Review 2015: Assessment Framework and Results; Corrected Results of Dodd-Frank Act Stress Tests.