CCAR and CapPR
What is Comprehensive Capital Analysis and Review (CCAR) and Capital Plan Review (CapPR)?
The Comprehensive Capital Assessment and Review (CCAR) and the Capital Plan Review (CapPR) is an annual exercise by the Federal Reserve Board (FRB) to ensure that financial institutions have “robust forward-looking” capital planning processes that commensurate with its unique risks and accounts for sufficient capital to continue operations throughout times of economic and financial stress. As a part of the CCAR, the Federal Reserve evaluates the institutions capital adequacy, including a supervisory stress scenario.
Who is Impacted by the CCAR and CapPR Exercises?
Banks with at least $50B in assets with tier 1 material portfolios - auto, mortgage, card, and commercial
How Can Experian Help my Business with CCAR and CapPR Compliance?
Experian can review and assess the bank’s portfolio(s) and provide a gap analysis and project design that parallels the FRB methodology, followed by data prep, development, integration, and validation of loss projections using PD, LGD, EAD models.
- Probability of Default (PD)
- Loss Given Default (LGD)
- Exposure at Default (EAD)
Experian offers on going simulation, stress testing scenarios and forecasting based on different macroeconomic conditions.
We will link the loss forecasting models and process in with the Basel metrics calculated in line with the requirements of the Advanced Internal Ratings Based (AIRB) approach for multiple portfolios.
Stress Testing and Capital Assessment
Experian understands the importance of measuring capital adequacy, stress testing and loss reserve estimation reporting and brings an extensive background in modeling, banking, risk management and simulation to our clients. Click the button below to learn more about our stress testing and captial assessment services and analytics.