How the Fed’s Covid stress test got stuck in the middle

Experts fear CCAR add-on has neither informed investors nor guided capital management

What’s the purpose of a bank stress test? That might sound like an overly philosophical question in the middle of a global pandemic, but it’s the question that market participants, together with former and some current regulators, have ended up asking after the results of this year’s Comprehensive Capital Analysis and Review (CCAR) were published in the US on June 25.

The original US public stress test in 2009 – the Supervisory Capital Assessment Program (SCAP) – was intended to identify just

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: