The Office of the Comptroller of the Currency (“OCC”), Board of Governors of the Federal Reserve System (“FRB”) and FDIC (collectively, the “agencies”) issued a final supervisory guidance outlining principles for the implementation of annual company-run stress tests by banking organizations with total consolidated assets of more than $10 billion but less than $50 billion, pursuant to Section 165(i)(2) of the Dodd-Frank Act and the final rules issued thereunder. The guidance, which is similar to the proposed guidance issued by the agencies last year, discusses supervisory expectations for Dodd-Frank stress test practices and offers additional details about methodologies that should be employed by these banking organizations. The guidance also confirms that banking organizations with assets between $10 billion and $50 billion are not subject to certain requirements applicable only to bank holding companies with assets of at least $50 billion, including the FRB’s capital plan rule, the FRB’s annual Comprehensive Capital Analysis and Review, supervisory stress tests for capital adequacy, or related data collections supporting the supervisory stress test.
See: Supervisory Guidance on Implementing Stress Tests.
Related news: Federal Reserve Board Releases Supervisory Scenarios and Instructions for 2014 Capital Planning and Stress Testing (November 4, 2013).