CCAR more severe than EU stress tests

Real GDP decline greater for US banks under Fed tests than for EU firms grilled by the EBA

Stress tests set by the Federal Reserve for 2020 are tougher for participating banks than those produced by the European Union.

Under the severely adverse scenario drafted by the Fed for this year’s Dodd-Frank Act Stress Tests (DFAST) and Comprehensive Capital Analysis and Review (CCAR), real GDP is projected to shrink about –8.5% from its pre-recession peak. In contrast, the adverse scenario for