Important updates from Experian regarding COVID-19 (Coronavirus). Learn more

Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Annual Stress Testing (DFAST)

Helping your business satisfy compliance regulations

Get connected
Abstract modern office architecture

CCAR and DFAST compliance

CCAR is an annual exercise by the Federal Reserve Board (FRB) to ensure that institutions have well-defined and forward-looking capital planning processes that account for their unique risks and sufficient capital to continue operations through times of economic and financial stress.

As part of the CCAR, the FRB evaluates capital adequacy, internal capital adequacy assessment processes and plans to make capital distributions, such as dividend payments or stock repurchases. The CCAR includes a supervisory stress test to support the FRB’s analysis of the adequacy of capital. Boards of directors are required each year to review and approve capital plans before submitting them to the FRB.

Section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) requires all financial institutions with total consolidated assets of more than $10 billion to conduct annual stress tests. On Oct. 9, 2012, the OCC, FDIC and FRB published its final annual stress test rules, which set out definitions and rules for scope of application, scenarios, reporting and disclosure. The results of the company-run stress tests provide the regulators with forward-looking information that will be used in bank supervision and will assist the agencies in assessing the company’s risk profile and capital adequacy. These stress test results are also expected to support ongoing improvement in a covered institution’s stress testing practices with respect to its internal assessments of capital adequacy and overall capital planning.

Stress testing and capital assessments

We understand the importance of measuring capital adequacy, stress testing and loss reserve estimation reporting and bring an extensive background in modeling, banking, risk management and simulation to our clients.

Check CCAR compliance off your list

Ensure compliance with the regulatory capital framework, including the more formal scenario analysis that’s applied.

Loss forecasting

We link the loss forecasting models and process in with Basel metrics calculated in line with the requirements of the advanced internal ratings-based (AIRB) approach.

Stress testing and capital assessments

Stress testing is used by regulators for measuring your bank’s viability. You can use it to your competitive advantage to look more closely at the impact of different levers in your credit risk strategies.

Balance business drivers

Understand the results of a stress test and evaluate strategic initiatives to help offset the potential impact by optimizing risk-weighted assets and capital usage.

Insights

White paper

Compliance as a differentiator

Meet compliance obligations while identifying profitable business opportunities.

Frequently asked questions

Generally, bank holding companies with at least $50 billion in total consolidated assets with tier 1 material portfolios — auto, mortgage, card and commercial. Currently, this includes the 30 largest bank holding companies.

We can review and assess the bank holding company’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)

We offer ongoing simulation, stress testing scenarios and forecasting based on different macroeconomic conditions.

We link the loss forecasting models and process in with the Basel metrics calculated in line with the requirements of the AIRB approach for multiple portfolios.

Comply with CCAR and CAPPR

Thank you for your interest in Experian®. In order for us to better serve you, please fill out the following information and click “Submit” at the bottom. If you’d like to talk to a representative immediately, please call us at:

1-855-829-8122

Loading...

We are unable to address personal credit report and/or membership inquiries via this business form. Visit Experian.com/help or call 888-397-3742 for consumer assistance.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.