Stress Test Results 2015: Regulators Shifting Focus to Qualitative Factors

Adequate Capital, But Expect More Capital Planning Scrutiny

The 2015 CCAR results reveal that, while most BHCs have adjusted their portfolios and implemented models that produce quantitative results consistent with regulatory expectations, qualitative processes that support the capital planning process should expect continued regulatory scrutiny over the coming years.

In this summary we discuss: 1) regulators’ shifting focus to qualitative factors in evaluating capital plans, 2) the trend toward higher capital standards among BHCs, 3) improvements in loan loss forecasts, and 4) how this information should inform banks’ planning for 2016 CCAR and Dodd-Frank Act Stress Testing (DFAST) processes.  

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