Federal Reserve Board Proposes Changes to DFAST/CCAR Rules

    View Authors September 2016
    On September 26, 2016, the Board of Governors of the Federal Reserve System (Federal Reserve) issued a notice of proposed rulemaking (NPR) inviting public comment on specific changes to the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) rules, including the elimination of the qualitative assessment requirement for bank holding companies that are large, but are not complex. Separately, in a speech delivered on September 26, 2016 at Yale University titled “Next Steps in the Evolution of Stress Testing”, Federal Reserve Governor Daniel Tarullo outlined a series of planned and potential changes to the Board’s DFAST/CCAR rules based upon the Board’s evaluation of those rules. 

    This alert briefly summarizes key features of these two announcements, which are applicable to bank holding companies with more than US$50 billion in assets.