CCAR

Bank capital planning processes are coming under greater scrutiny as the Federal Reserve begins assessing firms’ internal controls more frequently and directly over the course of a year.

After the economic meltdown of 2008, the Feds designed a “stress test” to hold banks to higher risk management standards and ensure they have enough capital to continue actively lending to households and businesses in adverse economic conditions.

However, in June, 2014, Federal Reserve Governor Daniel Tarullo announced that banks need to be more closely supervised because some “still lack reliable information about their business and exposure” and are “unable to measure or understand how stressful conditions can change the performance of their material business lines”.

Continue reading Important News About Bank Capital Planning: Feds To Supervise Banks’ Plans Year-Round

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Institutions should automate some of the core processes involved with CCAR to minimize the time, capital and resources they pour into manual compliance, according to Boyke Baboelal in his article, “CCAR Results: Taking the stress out of stress testing.”

Supporting his claim is a 2013 PwC Survey of banks, wherein 47% of respondents indicate they plan to invest materially in technology over the next three years to avoid modeling deficiencies and their associated costs and to free up time to work on other parts of the regulatory stress testing process that could use improvement.

Continue reading How To Pass A Bank Stress Test: Industry Analysts Explain CCAR Best Practices

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