Fed tweaks stress test to reflect pandemic risks

By Tyler Davies
22 Jun 2020

The US Federal Reserve will publish the results of its latest bank stress tests this week, after updating the exercise to include three new scenarios related to Covid-19. The new scenarios could have a bearing on dividend policy, but capital requirements will still be based on the pre-pandemic stress test model.

The results of the Dodd-Frank stress test (DFAST) and the comprehensive capital analysis and review (CCAR) will be published on Thursday, June 25.

Normally the large US banks and relevant market participants have at least a couple of months to consider the adverse scenario in these periodic ...

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