National banks and savings associations having total consolidated assets of $250 billion or more have until April 15 to provide their federal regulator the results of this year’s Dodd-Frank Act stress tests using “baseline” and “severely adverse” scenarios, according to the Office of the Comptroller of the Currency (OCC).
The OCC announced Thursday that it had released the scenarios and pointed out they are not forecasts.
“The results of the company-run stress tests provide the OCC with forward-looking information used in bank supervision and assist the agency in assessing a covered institution’s risk profile and capital adequacy,” it said.
The agency’s website shows that each scenario includes economic variables, including macroeconomic activity, unemployment, exchange rates, prices, income, and interest rates. “The severely adverse scenario is a hypothetical scenario designed to assess the strength and resilience of financial institutions,” it says.
Besides reporting results to the OCC by April 15, institutions generally must also publish summaries of their stress test results in the period from June 15 to July 15, according to the OCC.
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