Fed study says CCAR has not toughened over time
Higher planned dividends and buybacks to blame for increased capital depletion under stress tests
Economists at the Federal Reserve contest the idea that annual stress tests have become more severe over time, arguing the higher level of capital depletion reported by participating banks in recent iterations is not driven by a toughening up of the scenarios used.
The staffers show that the total decline to the Common Equity Tier 1 capital ratio posted by a sample of banks that took part in the
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