OCC Releases Dodd-Frank Stress Testing Scenarios for 2014 and the Final Policy Statement

The OCC released the economic and financial market scenarios that will be used in the next round of stress tests for large financial institutions. Concurrently, the OCC also issued the final “Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios.”

The scenarios include baseline, adverse, and severely adverse scenarios, as described in the OCC’s final rules that implement stress test requirements of the Dodd-Frank Act.  Separately, the guidance outlines the consultative processes that the OCC will use to gather information on material vulnerabilities or salient risks to the financial system, and to coordinate with the Board of Governors of the Federal Reserve System and the FDIC to develop the scenarios each year.

See: 2014 Stress Test Scenario Information.
See also: 78 FR 64153 (”Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios”).