§ 325.4 - Periodic stress tests required.

§ 325.4 Annual Periodic stress tests required.

Cross Reference

Link to an amendment published at 84 FR 56934, Oct. 24, 2019.

(a) General requirements -

(1) $10 billion to $50 billion covered bank. Prior to January 1, 2016, a $10 billion to $50 billion covered bank must conduct a stress test on or before March 31 of each calendar year based on financial data as of September 30 of the preceding calendar year. Beginning January 1, 2016, a $10 billion to $50 billion covered bank must conduct a stress test on or before July 31 of each calendar year based on financial data as of December 31 of the preceding calendar year.

(2) Over $50 billion covered bank. Prior to January 1, 2016, an over $50 billion covered bank must conduct a stress test on or before January 5 of each calendar year based on financial data as of September 30 of the preceding calendar year. Beginning January 1, 2016, an over $50 billion covered bank must conduct a stress test on or before April 5 of each calendar year based on

Each covered bank must conduct the periodic stress test under this part subject to the following requirements:

(a) Financial data. A covered bank must use financial data as of December 31 of the

preceding

calendar year prior to the reporting year.

(b) Scenarios provided by the Corporation. In conducting the stress test under this subpartpart, each covered bank must use the scenarios provided by the Corporation. The scenarios provided by the Corporation will reflect a minimum of three two sets of economic and financial conditions, including baseline , adverse, and severely adverse scenarios. The Corporation will provide a description of the scenarios required under this section to be used by each covered bank no later than November 15 (for stress test cycle beginning October 1, 2014) or February 15 (for stress test cycle beginning January 1, 2016, and all stress test cycles thereafter) of that calendar of the reporting year.

(c) Significant trading activities. The Corporation may require a covered bank with significant trading activities, as determined by the Corporation, to include trading and counterparty components in its adverse and severely adverse scenarios. The trading and counterparty position data used in these components this component will be as of a date between October 1 and December 1 (for the stress test cycle beginning October 1, 2014) or between January 1 of the year preceding the reporting year and March 1 (for the stress test cycle beginning January 1, 2016, and all stress test cycles thereafter) of that calendar year selected by the Corporation and communicated of the reporting year, and the Corporation will communicate a description of the component to the covered bank no later than December March 1 (for the stress test cycle beginning October 1, 2014) or March 1 (for the stress test cycle beginning January 1, 2016, and all stress test cycles thereafter) of the calendar year.

[79 FR 69368, Nov. 21, 2014. Redesignated at 83 FR 17740, Apr. 24, 2018

of the reporting year.

(d) Frequency. A covered bank that is consolidated under a holding company that is required, pursuant to applicable regulations of the Board of Governors of the Federal Reserve System, to conduct a stress test at least once every calendar year must treat every calendar year as a reporting year, unless otherwise determined by the Corporation. All other covered banks must treat every even-numbered calendar year beginning January 1, 2020 (i.e., 2022, 2024, 2026, etc.), as a reporting year, unless otherwise determined by the Corporation.

[84 FR 56934, Oct. 24, 2019]