This story appeared in Bank Digest.
The Federal Reserve Board has issued a final rule, effective 30 days after publication in the Federal Register, adjusting its capital plan and stress testing rules for the 2017 cycle. According to the Fed's press release, the final rule removes large and noncomplex firms from the qualitative assessment of the Fed's Comprehensive Capital Analysis and Review, reducing significant burden on these firms and focusing the qualitative review in CCAR on the largest, most complex financial institutions.
CCAR evaluates the capital planning processes and capital adequacy of large financial institutions through quantitative and qualitative assessments. According to the Fed, large and noncomplex firms will still be required to meet their capital requirements under stress as part of CCAR's quantitative assessment and will be subject to regular supervisory assessments that examine their capital planning processes. The Fed said the scenarios and instructions for the 2017 CCAR cycle would be released shortly.