Federal Reserve System (Fed) Comprehensive Capital Analysis and Review (CCAR) Results

Fed Comprehensive Capital Analysis and Review (CCAR) Results are published annually as part of the US Federal Reserve compulsory program.

CCAR evaluates the adequacy of the capital of the largest US bank holding companies. The capital planning of such operations as paying the dividends or issuing and re-purchasing shares is assessed as well. It is an evaluation of whether the bank's capital is sufficient to continue lending to households in the market stress conditions even after the planned credit threshold is exceeded. The Fed provides a quantitative and a qualitative evaluation of the stability of banks. This evaluation is aimed at ensuring the effectiveness of risk management, strong internal control, competency of management, etc. Qualitative evaluation focuses on key elements of investment planning, improvements in risk management and increased stability of enterprises.

The comprehensive analysis includes extensive checks and stress tests involving the three scenarios: basic, unfavorable and very unfavorable.

Published results make it possible to assess the resilience of the US banking and financial system. If most of the assessed banks do not show problems with liquidity during the analysis and pass all the tests, this is seen as positive for the dollar, since it is a characteristic of the financial system stability.