Fed stress test AOCI wallop softens in 2019

Fourteen participants see projected capital drain due to unrealised losses drop 63% year-on-year

Federal Reserve stress tests concluded last month did not hobble banks as badly as last year. One reason? The effect of accumulated other comprehensive income (AOCI) on participants’ projected capital through the nine-quarter crisis simulation. 

Unrealised gains and losses on securities a bank plans to sell flow through to their book equity as AOCI. Participants in the Fed’s annual stress tests must estimate how the value of their portfolios will gyrate under its chosen scenarios, and add or

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

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