The Office of the Comptroller of the Currency and Federal Reserve have released details on the scenarios they will use to stress tests on large financial institutions, with the latter adding 12 more banks to its examination roster.
The Dodd-Frank Act requires national banks and federal savings associations with total consolidated assets of more than $10 billion to conduct annual stress tests. On Oct. 9, 2012, the OCC published its final annual stress test rule, establishing that the information on the scenarios it uses will be provided to covered institutions by Nov. 15 of each year. The OCC scenarios include “baseline,” “adverse,” and “severely adverse” categories. Scenarios include spiking interest rates and unemployment numbers.
