Bringing together global knowledge and local best practices

CCAR: Getting to the Real Objective

In this paper we will review how to actively manage the Comprehensive Capital Analysis and Review’s (CCAR) real objective with a clear dual strategy that includes both short-term and longer-term goals for stress-testing, modeling and system improvements. How its set of regulatory compliances exercise are not redundant. The CCAR’s effects on risk management and paradigm shifts from traditional approaches. Along with a review of the macroeconomic facts around the Great Recession reveals some useful insights for bank extreme-risk scenario development, econometric modeling and stress simulations.