Banks braced for mystery coronavirus add-on to CCAR

Uncertainty surrounds scenario design and impact on stress capital buffer, dividends

mystery

With US capital stress-test results less than a week away, uncertainty over how the Federal Reserve will adjust its assessments to reflect the Covid-19 economic crisis, and the impact this decision will have on banks’ capital plans, is causing sector-wide anxiety.

The comprehensive capital analysis and review (CCAR) and Dodd-Frank Stress Test (DFAST) results are due to be published on June 25, 2020.

Covid-19 “sensitivity analyses” will be appended to the Fed’s CCAR assessments, but how the

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