CCAR
Comprehensive Capital Analysis and Review
Federal Reserve program evaluating large banks' capital planning and stress testing capabilities.
CCAR requires large bank holding companies to submit annual capital plans demonstrating their ability to maintain adequate capital during stressed economic conditions. Banks must conduct stress tests using scenarios provided by the Federal Reserve and their own internally developed scenarios. The program evaluates both quantitative capital adequacy and qualitative capital planning processes including risk management, internal controls, and governance. CCAR includes both supervisory and company-run stress tests with public disclosure of results. Banks that fail CCAR may face restrictions on capital distributions including dividends and share repurchases. The program has evolved to include enhanced requirements for systemically important banks and integration with other regulatory capital requirements.
Example
Annual stress testing scenarios, capital distribution requests, qualitative assessments of risk management