In a bind: how CCAR constrains US bank strategy

Fed’s stress tests are forcing banks to cut loan portfolios and trading assets

Image of red tape

Earlier this year, a large international bank reluctantly jettisoned one of its US lending portfolios. The loans were perfectly healthy and would have remained on the firm’s books were it not for the capital they required under the US Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR). 

“We had a lending portfolio where we felt the return on a risk-adjusted basis – when you look at CCAR stressed conditions – didn’t justify the risk going forward,” says the firm’s head of stress

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a 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